Investing in Space – Part 2

It’s already May. In just another month we will have already finished the first half of 2021. I am kind of happy that time is moving so fast now, because this whole COVID situation just doesn’t seem to end.

But COVID or not, the world doesn’t stop turning and one of the most exciting investment frontiers is gaining more traction. As I wrote last year about investing in space, today I’d like to share the updated infographic from one of the most devoted space investment specialists: Seraphim.

Not all of these companies are publicly listed. Some are even still simple startups. But this smart overview can give you more ideas how vastly diversified this sector already is, and what opportunities lie ahead of investors who are willing now to take the first steps.

By the way, for those who don’t want to research too much but are eager to invest in space, there is an ETF available on the US market. It’s called Procure Space ETF and the trading shortcut is pretty spot on: UFO. Another option is the ARK Space Exploration & Innovation ETF (Shortcut: ARKX).

Investing in space

I mentioned it somewhere before, but I like to point it out one more time: Investors are in general positive people. Especially those who focus on the long term prospects of the world. We might be in a pandemic that is devastating economies across the globe right now. But most investors know that we will pass this, that the economy will come back, that new jobs will be created, and that this is not the end for humanity.

So naturally, every crisis is an opportunity, and when things turn doom and gloom for many, investors are trying to look beyond that, always on the look-out for some fresh straws of grass that start to (re-)grow from the ground.

Where does humanity go from here?

One such straw of grass for me is a future trend that is gathering tremendous momentum. The space industry.

I know: Space stations, space mining, space exploration, it all sounds like crazy stuff. And if you are not actively researching about it you might believe that this is something still far beyond our reach.

But you might get surprised how this is, in a sense, not a new industry at all, and how many players are already actively working in this field. I recently stumbled upon this amazing infographic from a company called “Seraphim Capital”, a specialist investor group:

The most recent launch of a SpaceX shuttle was a moving moment for me. It went so smooth and stable, one would even wonder how it was a special moment at all. But for those who don’t appreciate the significance of this: Sending people into space in such a safe and controlled manner, is like setting foot on a proper boat to cross an ocean for the first time. It opens up a new world for us. For an investor, this is an entirely new frontier opening up. Literally, a new world to discover.

Personally, I am invested in two companies that focus on this future business: One is Virgin Galactic (SPCE), and the second one is Hexcel Corp. (HXL). The first one is focusing on bringing people to space. Whether as tourists, future astronauts, or general space flight training and transportation. The second company is developing structural materials that can be used for various kinds of vehicles and protective systems, like for example hulls for planes and space ships, or possibly protective walls for a moon base.

There are endless options and the race is on

As you can see from the infographic, there are plenty of companies for investors to choose from. For those who prefer ETFs. I also found some which are focusing on space investments, but I can’t trade them in Europe so I also won’t talk about them here just yet. But whether it’s computer software or hardware, engines, communication systems, satellites, drones, navigational systems, data crunchers, launch services, protective equipment, … the opportunities seem endless… and the race is on!

Disclosure: I own SPCE and HXL.