Space is a place, and Ark Invest is moving in.
The investment company run by Cathie Wood has seen over half a billion dollars pour into it ETF for space exploration and innovation (ARKX) was launched on March 30 with some analysts suggest it could cross $ 1 billion in assets in a matter of days.
Some investors in the fund may not fully understand what they are getting into, said Todd Rosenbluth, senior director of ETF and mutual fund research at CFRA Research.
Impressive inflows into the fund could be “a sign that investors have an interest in something Cathie Wood and the team will manage, but I’m not sure they fully appreciated what they were getting,” Rosenbluth told CNBC “ETF rub” this week.
Although ARKX is investing in cleaner performances in space races, such as satellite equipment Iridium Communications, his other farms are a mosaic of old industrialists, internet companies and agricultural names, Rosenbluth said.
As of Friday, its main property was a geolocation company Trimble, Ark is his own 3D printing ETF (PRNT), Kratos’ defense and security solutions,, L3Harris Technologies i JD.com. The ETF also owns shares Netflix and an agricultural company Deere.
“Thematic investment in ETFs is often open to interpretation, so the way Ark describes its space ETF includes companies that will benefit from aviation activities or technologies used to support space radiation,” Rosenbluth said.
That may include Netflix and Deere, which Rosenbluth admitted would likely be long-term users of the space race, but they come at the cost of some potentially important exclusions, he said.