Investing in exchange-traded funds (ETFs) can be an excellent way to diversify your portfolio. Global X recently launched a new ETF, one that's focused on commercial growth opportunities in space. Launch costs have been declining in recent years and with more interest on space exploration lately, it can been an exciting investment opportunity to consider. With the space market potentially growing to be worth $1 trillion by 2034, there may be some significant gains for investors to accumulate in the years ahead.
The Global X Space Tech Index ETF (TSX:ORBX)(NASDAQ:ORBX) recently launched, and it may be a compelling option for growth investors seeking exposure to space stocks. This ETF provides targeted exposure to companies driving the commercialization of the global space economy. It actively focuses on pure-play businesses across the entire space value chain, including space technologies, reusable launch systems, orbital services, and satellite-enabled communications. Along with a heavy focus on the industrial goods and telecommunications sectors, it holds a concentrated portfolio that currently features innovators like Rocket Lab and Planet Labs.
This passively managed fund has a management fee of 0.49%. While that is slightly higher than broad market index funds, it is fair in relation to other highly specialized, thematic ETFs. A big bonus for growth investors is that it offers much more diversification within a niche sector, mitigating the risks of picking individual stocks.
Whether you want to capture the next wave of connectivity or just want a forward-looking investment to hold for the long haul, this fund could be a great way to get exposure to the top space stocks.
