Why the space industry could be rocket fuel for your portfolio

The space industry has been the subject of increasing interest in recent years as the cost of rocket launches has come down and more satellites have gone into orbit. There have also been more headline-grabbing events like the recent Artemis II crewed flyby of the Moon or the celebrity-laden space tourism flight into suborbital space from Amazon’s Blue Origin. Throw in the largest IPO in the history of the world and you get a confluence of events that have driven higher investor demand for exposure to the thematic. I spoke with Betashares Investment Strategist Hugh Lam about the Space Industry ETF (ASX: RCKT), how the emerging theme is positioned, why investors are seeking exposure, and what impact the high-profile SpaceX IPO will have on the sector. “What the IPO shows is that the commercial opportunities available in space are bigger than what many people think,” Lam says. “The investment opportunity is really there for investors to tap into. I think the other thing is that we're seeing advanced technologies or technologies enabling more space activities.” TIME CODES 00:00 – Why Betashares launched a space industry ETF 01:32 – What RCKT actually invests in 02:16 – How the ETF selects companies 02:55 – The three biggest holdings in RCKT 06:00 – The fast-track IPO inclusion feature 06:42 – How SpaceX could enter the ETF 07:07 – The biggest risks in space investing 08:28 – Why diversification matters in emerging themes 09:25 – Where RCKT fits in a portfolio 10:02 – How investors can learn more about RCKT