Space Concept ETFs Gain Popularity, Only This One Actually Holds SpaceX

SpaceX hasn't gone public yet, but the wealth effect surrounding it has already ignited early.

As anticipation for a SpaceX IPO continues to rise, a batch of space-themed ETFs have performed brilliantly this year, with year-to-date gains generally ranging from 20% to 45%. However, in the midst of this craze, a key question has been overlooked by many investors: there is currently only one pure space-themed fund that holds SpaceX shares before the IPO.

The Only "Authentic" Holding: NASA ETF

According to Morningstar data, Tema Space Innovators ETF (ticker symbol: NASA) is currently the only pure space-themed ETF that holds SpaceX's private shares before the IPO through a Special Purpose Vehicle (SPV).

This fund was just established at the end of March this year, with SpaceX being its largest holding, accounting for 11.1% of its assets. It also holds shares in space enterprises such as Rocket Lab, Planet Labs, and Firefly Aerospace. Since its first-day trading close, NASA ETF has accumulated a rise of over 25%.

"A space ETF without SpaceX is like a semiconductor ETF without Nvidia," said Uri Horeshian, Chief Investment Officer of Tema ETFs. "We believe that it is worthwhile to obtain private shares before the IPO."

It is worth noting that SpaceX's pre-IPO holdings also appear in three other ETFs: ERShares Private Public Intersection ETF, Baron First Principles ETF, and KraneShares Artificial Intelligence & Technology ETF, but none of these are pure space-themed funds.

Liftoff Without SpaceX

Even though most space ETFs do not directly hold SpaceX, they have still caught this wave of enthusiasm.

Procure Space ETF (ticker: UFO) has accumulated a rise of over 40% since the beginning of this year. Although it has not yet held SpaceX, VettaFi, the index compiler that UFO tracks, has announced changes to rules that will allow the fund to include SpaceX in its holdings on the day of its public listing.

UFO's CEO, Andrew Chanin, also pointed out that the fund indirectly gains exposure to SpaceX by holding satellite company EchoStar, as EchoStar itself has invested in SpaceX.

Cathie Wood's ARK Space & Defense Innovation ETF has risen nearly 20% this year, also not holding SpaceX, but ARK's venture capital fund, ARK Venture, holds SpaceX shares.

State Street SPDR S&P Kensho Final Frontiers ETF (ticker: ROKT) has risen nearly 35% this year; Roundhill Space & Technology ETF (ticker: MARS), which went public in March this year, has a rise of over 35%; Global X Space Tech ETF (ticker: ORBX), which went public in mid-April, has a rise of over 10%; VanEck has just announced the upcoming launch of VanEck Space ETF (ticker: WARP).

Additionally, Defiance Connective Technologies ETF (ticker: UFOX) has risen nearly 45% this year, heavily investing in Apple, Nvidia, and Broadcom, while listing AST SpaceMobile, Rocket Lab, EchoStar, and Planet Labs as the top ten holdings, and has recently changed its stock ticker from SIXG to UFOX.

Real Test After Going Public

At present, the collective celebration of space ETFs is largely based on the anticipation of SpaceX's listing. Once SpaceX officially begins trading, the speed at which various funds compete to include this stock, as well as the valuation levels that have fully reflected expectations at that time, will become the true moment to test the mettle of this craze.