Global X launches space tech ETF

Global X has now launched the space tech ETF (ASX: MOON), which was flagged by Financial Standard in April.

MOON is the second ETF launched of three announced by the ETF issuer, with the Global X S&P World Natural Resources ETF expected to hit the market later this year followed by the hedged version of the S&P World ex Australia GARP ETF (GHRP), which was launched recently.

The launch also follows a similar offer introduced by Betashares last month.

MOON currently contains 28 companies including US-based earth imaging company Planet Labs PBC, launch service provider Rocket Lab and satellite telecommunications company Globalstar. It tracks the Mirae Asset Space Tech Index and incurs a management fee of 0.5% per annum.

The launch of MOON coincides with market anticipation around the potential SpaceX initial public offering (IPO) and strong investor demand for access to space technology, Global X said.

Commenting, Global X chief executive Alex Zaika said the ETF provides a practical solution for investors seeking access to the space economy along with high-profile US listings.

"A decade ago, participating in marquee US IPOs meant opening offshore accounts and often missing out on allocations. Today, ETFs have become one of the most effective ways for Australian investors to access global growth opportunities," he said.

"Space is transitioning from a frontier market into a critical layer of economic infrastructure. Falling launch costs, reusable rocket technology, and advances in satellite networks are reshaping the investment landscape.

"The space economy is projected to surpass US$1 trillion over the coming decade, and investors are increasingly looking for simple ways to access that growth."

Meanwhile, Global X senior investment strategist Billy Leung explained the mechanics behind the ETF.

"The defining feature of MOON is its 50% revenue threshold, which ensures companies are genuinely tied to the space economy. This is what separates a true thematic exposure from traditional aerospace and defence indices," Leung said.

"The index captures the full value chain, from launch systems and satellite infrastructure through to data, applications and exploration, giving investors exposure to the entire commercial stack of space."

He also said the ETF can play multiple roles in a portfolio underpinned by "powerful" structural tailwinds.

"The cost of reaching orbit has fallen dramatically, enabling dense satellite networks that support broadband, Earth observation and secure communications. At the same time, government and defence spending provides a durable demand floor for the sector," he added.

"MOON can serve as a targeted allocation to the commercialisation of space, complement other disruptive technology exposures like AI and robotics, or diversify away from concentrated mega-cap tech positions."