Investing in the Second Space Age: VanEck Launches Space ETF

Editorial
Wednesday, 29 June 2022 14:13

  • Technological advances make space travel much cheaper and easier
  • VanEck Space Innovators’ UCITS ETF provides access to a selection of the world’s largest companies shaping the new space age

Amsterdam, June 29, 2022 – ETF provider VanEck quotes today VanEck Space Innovators UCITS ETF on the London Stock Exchange and Deutsche Boerse Xetra. The new ETF will allow investors to invest in some of the largest and most liquid companies in the global space industry today.

“A new space age has begun,” says Martijn Rozemuller, CEO of VanEck Europe. “In recent years, great advances have been made in space technology, and the cost of rocket launches and satellites has dropped significantly, making space much easier and cheaper to reach, opening up entirely new industries.”

Things like reusable rockets and smaller and cheaper satellites offer new opportunities for businesses and investors thanks to falling costs, just as the demand for satellite-based internet services is rising and brand new opportunities, such as space tourism, are emerging. For example, space could grow from a $ 350 billion industry to a $ 1 trillion industry by 2040.[1]

“While rockets and satellites were previously primarily developed and launched by states, there are now a large number of commercial companies involved in developing and operating these technologies,” says Rozemuller. “At the same time, space is also returning to the agenda of governments, which are increasingly dependent on the services of private companies in this new commercial space age.”

Investment in five future space themes

With VanEck Space Innovators’ UCITS ETF, investors can now invest in a global range of the key companies shaping this new space age. The ETF invests in a range of space-related industries, such as satellite equipment, communications, research and space tourism. Under the pure play approach, the ETF only invests in companies that have the potential to generate at least 50 percent of their revenue from space-related business activities.

Specifically, the ETF focuses on five future space sectors:

  • Reusable missiles: These are revolutionizing the space industry by lowering the cost of accessing space and launching satellites.
  • Cheap satellites: A new generation of companies producing low-orbit satellites is challenging traditional satellite manufacturers. With the introduction of 5G and the development of the metaverse, these new satellites provide much-needed data capacity.
  • Space tourism: Future passengers have already paid millions of dollars. The tickets are very expensive, but space tourism is still in its infancy.
  • Climate research: Satellites have become indispensable for climate research. They track aspects such as the state of the oceans, the temperatures on Earth and the height of the sea surface.
  • Monitoring of CO2 emissions: New groups of satellites are helping to monitor and even combat climate change. They can detect methane and carbon dioxide emissions from factories, predict the course of forest fires and detect radio signals in remote areas to detect illegal deforestation.

The VanEck Space Innovators UCITS ETF will develop MVIS View Global Space Industry ESG Index as accurately as possible. The ETF currently has a total Total Expense Ratio of 0.55 percent pa and replicates physically. With its own ESG filter, the ETF excludes highly controversial companies and manufacturers of controversial weapons systems, including biological and chemical weapons, cluster munitions and anti-personnel mines.

The prices of the securities in the fund are subject to the risks associated with shares in the securities market, including general economic conditions and sudden and unforeseen price declines. Investing in the fund can lead to losses.

Industry or sector concentration risk: The fund’s assets may be concentrated in one or more specific sectors or industries. The sub-fund may be exposed to the risk that economic, political or other factors will adversely affect the affected sectors or industries and thus affect the fund’s value development to a greater extent than if the fund’s assets were invested in a wider range of sectors or industries.

VanEck Space Innovators UCITS ETF
Index MVIS® Global Space Industry ESG Index
Ticker Xetra JEDIA
Ticker LSE GBP / USD JEGB / JEDIA
ARE YOU IE00045H0ZN9
management company VanEck Asset Management BV
Guardian State Street Custodial Services (Ireland) Limited
Country of residence Ireland
Base currency US dollars
Product structure Physical (completely replicating)
Lunch deal June 29, 2022
Total Expense Ratio (TER) 0.55% pj
Use of the proceeds Reinvestment

Media contacts:

Sander Zboray, CFA. Head of Marketing and Product Strategy.

szboray@vaneck.com

Phone +31 6 4560 1958

About VanEck:

VanEck offers distinctive ETFs at a relatively low price. As a family business, it puts the interests of its customers first throughout the market cycle. Since its founding in 1955, VanEck has been driven by offering innovative investment strategies that can optimize the return and risk of investment portfolios. For example, it was one of the first asset managers to give investors access to global stock markets, gold, emerging markets through funds and ETFs.

VanEck currently manages approximately $ 72 billion * worldwide and has offices in New York, Amsterdam, Frankfurt, Madrid, Zurich, Sydney and Shanghai.

More information about VanEck and VanEck’s funds can be found at www.vaneck.com

* Pr. 15-06-2022

Important messages

This press release is for informational purposes only and may only be forwarded to (potential) investors in the Netherlands.

This information comes from VanEck Asset Management BV, a UCITS management company under Dutch law and registered with the Dutch Financial Markets Authority (AFM). The information is intended to provide investors with general and preliminary information only and should not be construed as investment, legal or fiscal advice. VanEck Asset Management BV and the companies affiliated with VanEck Asset Management BV (collectively ‘VanEck’) disclaim any responsibility with respect to decisions made by the investor based on this information regarding the purchase, sale or possession of investments. The views and opinions expressed here are those of the author / authors and do not necessarily reflect VanEck’s. The opinions are current at the date of publication and may change based on changing market conditions. Certain statements in this contribution may be estimates, forecasts and other forward-looking statements that do not reflect reality. We consider the information coming from third parties to be reliable. However, this information has not been independently verified. Therefore, its accuracy and completeness can not be guaranteed. All listed indices are measures for comparison of general market sectors and returns. It is not possible to invest directly in an index.

VanEck Asset Management BV, the management company of VanEck Space Innovators UCITS ETF (“ETF”), a division of VanEck UCITS ETFs plc, is a UCITS management company under Dutch law and registered with the Dutch Financial Markets Authority (AFM). The ETF is registered with the Central Bank of Ireland and follows a stock index. The value of ETF assets may fluctuate. This is largely the result of the investment strategy used. When the value of an underlying index falls, so does the value of the ETF.

Investors should consult the prospectus and key investor information before investing in a fund. These documents are available in English free of charge at www.vaneck.com and at the request of the management company. The key investor information is also available in some other languages ​​where relevant.

The MVIS® Global Space Industry ESG Index is owned exclusively by MarketVector Indexes GmbH (a wholly owned subsidiary of VanEck Associates Corporation). MarketVector Indexes GmbH (“MarketVector”) has entered into a contract with Solactive AG to maintain and calculate the index. Solactive AG makes every effort to ensure that the index is calculated correctly. Notwithstanding its obligations to MarketVector, Solactive AG has no obligation whatsoever to notify third parties of any errors in the index. VanEck Space Innovators UCITS ETF is not sponsored, endorsed, sold or promoted by MarketVector. MarketVector makes no representations about the desirability of investing in the fund.

All performance data refers to the past and is not a guarantee of future results. Investment involves risks, including possible loss of principal. Please read the prospectus and EBI before investing in a fund.

No part of this material may be reproduced in any form or by any means without the express written permission of VanEck.

© VanEck Asset Management BV

[1] Source: Gardens Analytics, Morgan Stanley Research.

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