Is it time to invest in space?
Are space stocks ripe for investing? Virgin Galactic, Boeing, Lockheed Martin and Astra Space are just some of the space stocks that are available for investors and they seem like an early opportunity to get on board the potentially be very lucrative space industry.
Developments in space are becoming increasingly funded by private corporations and entrepreneurs such as Elon Musk, Jeff Bezos and Richard Branson, who are investing billions of dollars. The possibility that we could travel to or even live in space seems to be within reach for the first time since the first moon landing by humans in 1969 by the Apollo 11 crew.
Virgin Galactic Holdings Inc. ( NYSE: SPCE)
Boeing Company (NYSE: BA)
Lockheed Martin Corporation (NYSE: LMT)
Astra Space Inc. ( NASDAQ: ASTR)
Maxar Technologies Inc. ( NYSE: MAXR)
Specifics of investing in ETFs
Traditional stocks aren’t necessarily the only option when it comes to investing in space. You can invest in stocks like Boeing Co through CFDs with smaller initial investments. ETFs which contain many leading holdings may also provide a good alternative. An example is Procure Space ETF (UFO), which contains top holdings such as Garmin Ltd., Trimble Inc., Iridium Communications Inc., DISH Network Corp. Cl A, MDA Ltd., Lockheed Martin Corp. and Boeing Co. Another ETF that could be profitable is SPDR S&P Kensho Final Frontiers ETF (ROKT), which not only operates in space but also in the deep sea.
What you need to know before investing in space stocks or ETFs
As lucrative as space stocks may seem, they may not be able to keep all that they promise. Some experts warn that many of the companies in ETFs may be active in many different industries and only to a lesser extent in space exploration and development. This may mean that they are too spread out among many sectors and may be influenced by them too strongly. Before investing in an ETF, look carefully at all of the holdings. If they do contain the right amount of future-oriented space holdings, ETFs can potentially generate high profits.
It may be a better idea to invest directly into a space stock such as SPCE, to profit from the growing demand for the space industry.
Virgin Galactic launched into space this summer and is since receiving a high number of orders for seats on board of the spaceship. Tickets cost up to $250,000 and bookings should be available this year. Of course, there are no guarantees for safe travel to space, but Virgin Galactic was able to improve the design of the spacecraft after a disastrous accident in 2014. This year, Richard Branson was on board and was one of the first people to test the flight. As time goes by, technology is improving, making public space travel a strong possibility for the future.