Two months, $2.6 billion: How NASA ETF turned SpaceX IPO access into a hot retail trade
NASA's ETF access to SpaceX has sparked interest among retail investors, with several new space-themed ETFs launching recently. These funds offer a way for everyday investors to participate in the space sector, which is seen as a potential growth area similar to AI. However, experts caution that not all ETFs are created equal, emphasizing the importance of due diligence.
- ▪NASA isn't the only ETF with access to SpaceX; other funds like RONB and XOVR also hold shares.
- ▪The expected IPO value of SpaceX is over $1.5 trillion, with XOVR's shares valued at close to $300 million.
- ▪Several new space ETFs have launched recently, indicating strong retail investor interest in the sector.
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NASA isn't the only ETF that has access to SpaceX, though the options are limited. Mutual fund manager and billionaire Ron Baron, a long-time Tesla and SpaceX investor, owns the rocket company through his First Principles fund (RONB). Tesla is the top holding in the RONB ETF, at over 14%, while holding close to 2% of the fund's assets in SpaceX. The ERShares Private-Public Crossover ETF (XOVR), which offers access to late-stage private companies, also owns shares of SpaceX, which it says are worth close to $300 million based on an expected IPO value of over $1.5 trillion.Setting a precise valuation for the SpaceX deal remains a point of contention in the market and among investors ahead of the deal's pricing.Mike Akins, founding partner at ETF Action, said on "ETF Edge" that the ETF…
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