Had enough of the balloons yet? The discourse surrounding UFOs and IFOs over the U.S., Canada, and China may seem like the newest flavor-of-the-week news story, but nations competing for control of vital aerospace zones shouldn’t be ignored. Surveillance and communication technologies in the skies and in space are only going to become more important, with recent news for aerospace tech firm Mynaric (MYNA) underlining the case for a satellite ETF like the ARK Space Exploration & Innovation ETF (ARKX).
MYNA stock rose 26.4% over the last five days after the firm announced its very first delivery of multiple flight-ready editions of its CONDOR optical communications terminals. MYNA, which manufactures laser communications equipment for air and space communications networks, delivered the Mk2 terminals to satellite makers Telesat Government Solutions (TSAT).
Advances in aerospace technology have taken on heightened importance over the last week or so following widespread, global coverage of both identified Chinese surveillance balloons over the U.S. as well as several UFO reports above the U.S., Canada, and China, with some shot down by fighter jets. Defense and commercial interests are growing in low orbit and in space, building the case for investors to watch a satellite ETF like ARKX.
ARKX is the only ETF with exposure to MYNA, according to VettaFi, weighted at 1.3% in its portfolio. ARKX actively invests in companies that stand to benefit in advances in space exploration like robotics, AI, materials, and energy storage.
ARKX holds global navigation satellite system (GNSS) receiver and UAV makers Trimble (TRMB) as its largest-weighted stock, for example, at 70 basis points. The ETF has outperformed its ETF Database category average and its FactSet segment average over the last month with returns of 6.9% compared to 5% and 3.7% respectively.
While the balloon narrative may be close to popping, advisors and investors shouldn’t miss out on the potential of aerospace technology going forward. Control of the skies and space is paramount for countries and corporations, with ARKX a satellite ETF to watch in the weeks and months to come.
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