ETF Talk: Where No Investment Has Gone Before

Since the dawn of man, humans have kept their eyes on the stars.

As centuries passed, we invented new ways to explore our cosmos, keeping in line with humanity’s indomitable innovation and drive towards progress. And, while the kind of fantastical space-faring technology seen in science fiction works like “Star Trek” is still far off in the future, companies invested in space exploration inch closer to that goal every day.

Now, the aerospace and defense industry could see a boost soon, as a possibility exists for the White House to issue an enlarged defense budget. This, by proxy, benefits the space exploration and innovation industry, including today’s pick, the ARK Space Exploration & Innovation ETF (ARKX).

Founded in 2021, ARKX is the first-ever actively managed fund that targets the global space exploration and innovation industry. The fund defines space exploration as leading, enabling or benefiting from technologically enabled products and/or services that occur beyond Earth’s surface, and defines innovation as the introduction of a technologically enabled new product or service. Space exploration-related companies include orbital and suborbital aerospace, enabling technologies and beneficiaries of aerospace activities, such as agriculture, GPS and imaging.

ARKX has $274.43 million in assets under management and an expense ratio of 0.75%. Its primary sector is electronic technology, which makes up 56.47% of its holdings. Its top 10 holdings include Kratos Defense & Security Solutions, Inc. (KTOS), Iridium Communications Inc. (IRDM), Rocket Lab USA, Inc. (RKLB), Archer Aviation Inc. Class A (ACHR), Palantir Technologies Inc. Class A (PLTR), AeroVironment, Inc. (AVAV), Trimble Inc. (TRMB), Teradyne, Inc. (TER), L3Harris Technologies Inc. (LHX) and Amazon.com, Inc. (AMZN).

Exclusive ETF Talk: Finding Value in Your Brokerage

Chart courtesy of Stockcharts.com.

The fund rose 18.56% in the last month but slid 8.68% over three months and 2.46% year to date.

While it’s always good to reach for the stars, it’s also important to pick out the “star” investments for your goals. Investors should always do their due diligence before adding any stock, fund or ETF to their portfolios.

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.

Jim Woods

Jim Woods is a 20-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor. Jim is the editor of Forecasts & Strategies, Tactical Trader, TNT Trader, Five Star Trader, Bullseye Stock Trader, and The Deep Woods. His books include co-authoring, “Billion Dollar Green: Profit from the Eco Revolution,” and “The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse.” He’s also ghostwritten many books and articles, as well as edited content for some of the investment industry’s biggest luminaries. His articles have appeared on many leading financial websites, including StockInvestor.com, InvestorPlace.com, Main Street Investor, MarketWatch, Street Authority, Human Events and many others. Jim formerly worked with Investor’s Business Daily founder William J. O’Neil, helping to author training courses in the CANSLIM stock-picking methodology. The independent firm TipRanks rates Jim the No. 3 financial blogger in the world (out of more than 6,000). TipRanks calculates that, since 2012, he's made 361 successful recommendations out of 499 total, earning a success rate of 72% and a +15.3% average return per recommendation. He is known in professional and personal circles as “The Renaissance Man,” because his expertise includes such varied fields as composing and performing music; Western horsemanship, combat marksmanship, martial arts, auto racing and bodybuilding. Jim holds a BA in philosophy from the University of California, Los Angeles, and is a former U.S. Army paratrooper. A self-described “radical for capitalism,” he celebrates the virtue of making money from his Southern California horse ranch.