Susumu Yoshioka/DigitalVision via Getty Images
6 women in space, 11 minutes, over 100 km of altitude, and the world is once again talking about space exploration and innovation; exactly the name of the ETF ARK Space Exploration & Innovation ETF (
ARKX And 'Space Exploration' Are Back In The Spotlight, Yet I Still Prefer To Look Elsewhere
Summary
- ARK Space Exploration & Innovation ETF offers vertical exposure to space exploration but holds only 35–55 positions, with 47% directly linked to the space sector.
- The space sector within ARKX might still be immature, according to my calculations, 27% of the holdings are operating at a loss and 47% appear overvalued.
- Indirectly connected holdings are more sustainable but often overlap with cheaper, passive ETFs, raising concerns about overexposure.
- I believe the market segment has a lot of potential, but it’s still quite immature and therefore underrepresented by ETFs like ARKX.
Financial Serenity is a financial analysis and quantitative research column with a particular focus on the asset management sector. It is actively managed by Tommaso Scarpellini, a seasoned financial researcher and data analyst with proven experience in banking and financial analytics platforms. This initiative aims to provide an in-depth analysis of the dynamics driving the asset management market. On Seeking Alpha, we combine insights from rigorous data analysis with actionable opinions and ratings on ETFs and other trending instruments in the asset management space. Our mission is to deliver valuable, data-driven perspectives to help investors make informed decisions in this ever-evolving market.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
The author expresses only personal opinions and does not provide financial advice. The content is for informational purposes only and should not be considered as investment recommendations. The author assumes no responsibility for any investment decisions made based on this article. Always conduct your own research or consult with a financial advisor before making any investment choices. The author makes no guarantees regarding the data, and the user agrees that the author shall not be held liable for the user's use of the data.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.