Elon Musk, Jeff Bezos, Richard Branson… The highly publicized galactic ambitions of famous billionaire entrepreneurs have given new impetus to the conquest of space. Bringing a new lease of life to the dynamism carried so far by the major national and supranational agencies, such as NASA, in the United States, or the European Space Agency.
Results, the American bank Morgan Stanley estimates that the world space industry could see its current revenues tripled by 2040, which would allow it to exceed the symbolic threshold of 1000 billion dollars (approximately 890 billion euros).
This market unsurprisingly arouses the greed of many listed companies, whether they are involved in the manufacture of rockets and satellites, such as Lockheed Martin, Northrop Grumman Corporation and Aerojet Rocketdyne, space tourism (Virgin Galactic) or even in embedded technologies, for example the California software company Trimble.
Risk of dollar depreciation
So much so that space is now a separate compartment within the financial markets. Stock market indices invested exclusively in these so-called “space” stocks have even appeared recently, such as the S-Network Space Index or the S&P Kensho Space Index. This has enabled certain management companies to recently offer “Exchange Traded Funds”, or ETFs, almost identically replicating the performance of these indices.
Note that ETFs, also called « trackers », are index funds that investors can trade on the stock exchange just like a stock. They have much lower management fees than traditional investment funds, actively managed by a management company.
Easy to use, these financial products therefore make it possible to invest at a lower cost in the space industry, while spreading the risk over a large number of securities (several dozen, for example, for space ETFs). However, only a few ETFs specializing in this topic are currently available. And most are listed on the US stock exchanges, therefore denominated in dollars.
To trade them, it is therefore necessary to have a securities account allowing access to the American markets, a service offered by most banks and online brokers. And it is crucial to be aware of the exchange risk linked to the evolution of the greenback: the capital thus invested is exposed to a risk of depreciation of the dollar against the euro.
You have 36.21% of this article to read. The rest is for subscribers only.