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Space data centers promise long-term growth, but profitability is years away due to high launch costs and operational uncertainties. The SPDR S&P Kensho Final Frontiers ETF offers the most efficient, diversified exposure, benefiting from current revenue streams in aerospace and defense.
For three years, clients have asked the same question: “How do I get into SpaceX or OpenAI before the IPO?” That question just changed tense.
Following last week's macroeconomic developments — such as the July jobs report — it's worth taking a look at near-term ETF performance. Tracking top-performing funds allows advisors and investors to see what thematic strategies are resonating in the market.
Launched on October 22, 2018, the State Street SPDR S&P Kensho Final Frontiers ETF (ROKT) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Aerospace & Defense segment of the equity market.
Space stopped being a government-only game years ago. It's now a real, investable industry – satellites beaming broadband to ships and planes, earth-imaging companies selling data to farms and defense contractors, and launch providers racing to put more payloads into orbit than ever before.
As commercial applications in space multiply, investors may find opportunities that extend well beyond a potential SpaceX IPO. Here are some ETFs worth considering.
The commercial space sector now sits above $500 billion in market value, per NOAA's Office of Space Commerce, with order books for satellite operators, launch providers, and earth-observation companies stretching years into the future.
The State Street SPDR S&P Kensho Final Frontiers ETF delivers a 124% 1Y performance, driven by defense, industrial momentum, and space/deep-sea exposure. ROKT's diversified, AI-driven, equally-weighted portfolio leans heavily on top holdings, with over 40% in the top 10 and 53% in Aerospace & Defense. The forward P/E of 27.65x and EPS growth expectations (21.45% annualized) justify current valuations if growth materializes, but EPS revisions are not robust.