As billionaires launch themselves into space, you might think that now is a good time to invest in space exploration. But before you decide to put your money into Ark Invest’s space exploration ETF ARKX, you should know what stocks are actually in the ETF.
What stocks are in the ARKX Space Exploration ETF?
You won’t find Sir Richard Branson's Virgin Galactic (SPCE) company as a holding in the ARKX portfolio. When Cathie Wood’s Ark Invest first went public with ARKX on March 30, the fund reportedly had 627,000 shares in Virgin Galactic. However, those shares were gradually sold off before Branson took his history-making flight on July 11.
Although about 3.05 percent of the portfolio is in Amazon stock, that's for the online retail company, not Jeff Bezos’s Blue Origin space exploration company, which is privately held.
The ARKX Space Exploration ETF is comprised of 39 holdings. The holdings include popular stocks like Alphabet (Google), Netflix, and Amazon. Among the fund’s top five holdings, only one is really tied to the race to space.
Here are the top five holdings in the ARKX ETF:
First, Trimble makes up the largest share of the ARKX portfolio at 9.81 percent weight. The fund has 721,323 shares with a market value of over $60 million.
Trimble provides technology solutions and services to a wide range of industries, including agriculture, architecture, civil engineering, survey and land administration, construction, geospatial, government, natural resources, transportation, and utilities.
For the first quarter of 2021, the company reported total revenues of $887 million, which is a 12 percent increase over the same period in 2020.
Ark’s The 3D Printing ETF (PRNT)
Ark’s own 3D Printing ETF (PRNT) accounts for 6.63 percent of ARKX holdings. The fund has almost 1.1 million shares at a market value of $40.7 million.
The PRNT Fund invests at least 80 percent of its assets in securities that are include in the Total 3D-Printing Index, which tracks companies involved in the 3D-printing industry.
Defense and security company Kratos makes up 6.2 percent of the ARKX ETF. The fund has over 1.4 million shares with a market value of more than $38 million.
Kratos provides systems, platforms, and products for the national security and communications needs of the U.S. military, its allies, and commercial businesses. The company specializes in satellite communications, cybersecurity/warfare, missile defense, and microwave electronics.
For the first quarter of 2021, the company reported revenues of $194.2 million, which is a 15 percent increase over the same period in 2020.
Iridium Communications (IRDM)
Probably the closest company in the realm of space exploration, Iridium Communications provides voice and data communication services to businesses, foreign and domestic governments, organizations, and consumers through a network of 66 in-orbit and ground satellites.
IRDM accounts for 6.07 percent of the ARKX portfolio, with 910,271 shares at a market value of over $37.2 million.
For the second quarter of 2021, Iridium had total revenue of $149.9 million, which is a 7 percent increase over the same period in 2020.
Finally, JD Logistics, which trades on the Hong Kong Stock Exchange, accounts for 5.75 percent of the ARKX portfolio. The fund has over 8 million shares at a market value of more than $35.3 million.
JD Logistics is an arm of JD.com, a holding company engaged in e-commerce businesses primarily in China. The company operates in two segments - retail and new businesses (logistics).