BlackRock has launched the iShares Space Technologies UCITS ETF, with the ticker STAR, to give UK and European investors access to the space exploration sector.
The ETF will track the STOXX Global Space Satellites and Drones index, which comprises rocket, satellite and drone manufacturing companies, as well as industry supply chains.
These companies must derive at least 25% of their revenues from space, drone or satellite activities and offer “meaningful exposure” across the broader space ecosystem within their supply chains. Stocks will be screened using a two-tier methodology, using FactSet RBICS revenue classifications.
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The index uses an IPO fast-entry mechanism, which means newly-listed firms can be added within 10-to-30 days, rather than having to wait for a scheduled rebalance.
Omar Moufti, thematics and sectors product strategist at BlackRock, said: “As launch costs fall and satellite adoption rises, the space economy is becoming an increasingly important long-term investment theme.
“STAR captures the full space value chain, spanning rockets, satellites and autonomous technologies, with each layer supporting the next. STAR’s fast-track access and thematic purity create a differentiated way to participate in this expanding opportunity set.”
The ETF, which has a total expense ratio of 0.5%, is available in the UK as well as Austria, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Spain and Sweden.
