Investing

Cathie Wood's Ark Invest Launches Space ETF

The ARK Space Exploration & Innovation ETF (NYSEARCA: ARKX) began trading Tuesday morning. It’s the latest exchange-traded fund in Cathie Wood’s hugely popular stable of six actively managed ETFs.

The 38 equities in the fund include a lot of the usual suspects–Boeing, Lockheed, Virgin Galactic–along with a number of unusual inclusions–Amazon, Netflix, Alphabet, Workhorse, Deere.

Here’s how Ark defines the securities it plans to invest in:

Orbital Aerospace Companies that launch, make, service, or operate platforms in the orbital space, including satellites and launch vehicles.

Suborbital Aerospace Companies that launch, make, service, or operate platforms in the suborbital space, but do not reach a velocity needed to remain in orbit around a planet.

Enabling Technologies Companies that develop technologies used by Space Exploration related companies for successful value-add aerospace operations. These operations include artificial intelligence, robotics, 3D printing, materials and energy storage.

Aerospace Beneficiary Companies whose operations stand to benefit from aerospace activities, including agriculture, internet access, global positioning system (GPS), construction, imaging, drones, air taxis, and electric aviation vehicles.

According to the Ark website, ARKX’s investment objective is long-term capital growth. The fund “will invest under normal circumstances primarily (at least 80% of its assets) in domestic and foreign equity securities of companies that are engaged in the Fund’s investment theme of Space Exploration and innovation.” The term “space exploration” is defined as leading, enabling, or benefitting from technologically enabled products and/or services that occur beyond the surface of the Earth.”

ARKX’s top holding is Trimble Inc. which accounted for 8.61% of the fund’s holdings at the launch. Trimble is known for its GPS and navigational products which will one day be cornerstones of fully self-driving vehicles. Other companies that fit this category are Deere & Co. (3.17% weight in ARKX) and Raven Industries (1.77% weight). Deere manufactures farming equipment that uses, among other things, Raven’s GPS-guidance steering systems. All three firms are included in Ark’s Autonomous Technology & Robotics ETF (NYSEARCA: ARKQ) and Deere and Trimble are among the fund’s top 10 holdings.

Among the other top holdings in ARKX are Ark’s own 3D Printing ETF (PRNT) the second-largest holding with a weight of 6.03%, Kratos Defense & Security with a weight of 5.98%, L3Harris with a weight of 5.12%, and JD.com with a weight of 4.93%. The top 10 holdings account for just over 50% of the fund’s investments.

Here’s a complete list of the companies and weighting currently included in the ARKX ETF. The total value of the fund at launch is just over $4 million and shares were trading at $20.50 about 90 minutes after the opening bell. More than 7 million shares have traded.

Company Ticker Shares Market value($) Weight(%)
TRIMBLE INC TRMB 4,624 348,094.72 8.61
THE 3D PRINTING ETF PRNT 6,544 244,025.76 6.03
KRATOS DEFENSE & SECURITY KTOS 8,812 241,713.16 5.98
L3HARRIS TECHNOLOGIES INC LHX 1,020 206,896.80 5.12
JD.COM INC-ADR JD 2,440 199,494.40 4.93
KOMATSU LTD 6301 6,188 188,917.31 4.67
LOCKHEED MARTIN CORP LMT 500 186,395.00 4.61
IRIDIUM COMMUNICATIONS INC IRDM 4,528 171,543.28 4.24
THALES SA HO 1,628 160,003.01 3.96
BOEING CO/THE BA 580 145,301.60 3.59
NVIDIA CORP NVDA 264 136,733.52 3.38
SPIRIT AEROSYSTEMS HOLD-CL A SPR 2,748 132,728.40 3.28
DEERE & CO DE 348 128,053.56 3.17
AMAZON.COM INC AMZN 40 123,029.20 3.04
TERADYNE INC TER 940 107,056.60 2.65
ALPHABET INC-CL C GOOG 52 106,909.40 2.64
TELEDYNE TECHNOLOGIES INC TDY 260 105,591.20 2.61
DASSAULT SYSTEMES SE DSY 484 103,885.15 2.57
GARMIN LTD GRMN U 640 83,180.80 2.06
VIRGIN GALACTIC HOLDINGS INC SPCE 2,688 78,516.48 1.94
RAVEN INDUSTRIES INC RAVN 2,048 71,598.08 1.77
ALIBABA GROUP HOLDING-SP ADR BABA 288 66,775.68 1.65
AIRBUS SE AIR 576 66,018.36 1.63
AEROVIRONMENT INC AVAV 552 63,584.88 1.57
ELBIT SYSTEMS LTD ESLT 432 60,320.16 1.49
NETFLIX INC NFLX 100 51,395.00 1.27
HONEYWELL INTERNATIONAL INC HON 212 46,402.56 1.15
HEICO CORP HEI 376 46,236.72 1.14
WORKHORSE GROUP INC WKHS 3,212 41,531.16 1.03
ANSYS INC ANSS 120 41,067.60 1.02
TAIWAN SEMICONDUCTOR-SP ADR TSM 356 40,722.84 1.01
SYNOPSYS INC SNPS 168 40,397.28 1
XILINX INC XLNX 332 40,580.36 1
TENCENT HOLDINGS LTD-UNS ADR TCEHY 512 40,289.28 1
MEITUAN-CLASS B 3690 976 35,208.73 0.87
AUTODESK INC ADSK 124 33,576.72 0.83
REINVENT TECHNOLOGY-CLASS A RTP 2,936 30,211.44 0.75
ATLAS CREST INVESTMENT COR-A ACIC 2,920 30,046.80 0.74