Ark Invest has started a new space focused investment ETF called ARKX.

ARK Invest is famous for its ARK Innovation fund ARKK. Their largest holding has been Tesla and they have been the Tesla Bulls who correctly called Tesla going to $4000 pre-split back in 2017. Tesla is now at $845 per share which is $4225 pre-split.

ARK Invest will focus on the following areas in space.

They seek long-term capital growth by investing in domestic and foreign equity securities of companies focused on space exploration. What used to be a monopolistic and bureaucratic industry is being upended by both rocket and satellite cost declines. As a result of advancements within deep learning, mobile connectivity, sensors, 3D printing, and robotics, decades of ballooning costs have reversed trend and are beginning to decline, leading to a proliferation of satellite launches and rocket landings.

The companies starting in the ARKX have not been announced. Shares of space companies Virgin Galactic and Maxar Technologies each jumped more than 8% in after-hours trading yesterday and are up today.

ARK Innovation fund returning more than 170% in 2020 and growth in assets under management to $17 billion. Ark founder and CEO Cathie Wood has said investors should “get on the right side of change and stay on the right side of change because it has hit escape velocity in the aftermath of the coronavirus.”

In early 2020, ARK Invest had scenarios where there was a 25% chance that Tesla will be worth over $3,000 per share post-split. This would mean Tesla would be worth over $3 trillion.

Tesla surpassed the high functioning EV level. Tesla making gigafactories at half the cost per unit of the high functioning EV market scenario.

Nextbigfuture sees an ultra-functioning EV, high functioning battery and high functioning solar company.

Beyond cars adding in a continually improving autopilot. Autopilot FSD (although not fully autonomous) is the best driver assist. 30% of the people who buy Tesla now buy the autopilot at about $10,000 each. There is a growing share that buy the Tesla insurance for about $5000. We could see $15,000-20000 for the next version of Autopilot FSD which is bought by 60% of Tesla buyers and where Tesla insurance is bought by 80% of Tesla buyers. If there is 80% margin on the Autopilot FSD and 50% margin on the insurance then net income could double or triple.

Nextbigfuture believes that Tesla could have scenarios where they make a lot more factories by 2024. The factory production could be accelerated if Tesla can buy more factories from other automakers.

There is also the scenario where Tesla licenses technology to other carmakers and gets per unit cash without having to pay for factories.

NOTE: Author of this summary and commentary, Brian Wang of Nextbigfuture owns shares of Tesla, ETF Trends, Ark Invest
Written by Brian Wang.

16 thoughts on “ARKX Space ETF”

  1. Most people will become a burden on society because they are not competent to conduct their own affairs without training wheels a modern society provides. Less regulation ppl's fault.

    "For companies that want to do a large issuance of bonds or stocks in the public markets, we have a lot of rules and regulations to make sure that those companies aren’t fraudulent. One of the roles of the SEC is to regulate capital markets and ensure that while not every stock and bond will work out in the end, they are all at least legitimate stock and bond issuances from bona fide operating businesses.All these additional layers of regulation and oversight have a cost, though; enough that a lot of midsize businesses can’t realistically afford the time and cost to go through all that regulatory vetting. They need a simpler, more direct way to raise capital, with the caveat that if regulators don’t oversee the process (to reduce the cost), there’s also a greater risk of fraud, either people raising capital when the business isn’t real, or being misleading about the business’s health and growth prospects to get capital, when realistically it’s not a good investment.So rather than impose greater regulations on small businesses trying to raise capital, effectively eliminating access to outside capital, the SEC instead created the accredited investor rules. These rules state that companies can sell these unregistered, unregulated securities to accredited investors(a measure of being competent)"

  2. We have some pretty sharp nuclear guys here, and if they bring feasible designs like nuclear salt water rockets to the table to a company like this odds are they will get funded, and we will be talking about their contributions to humanity just like we talk about Elon Musk today. There is no niche for them today, but in 5-10 years? Absolutely.

  3. NBF should look for 3D printing companies that are focusing on space printing. That would be a company to do some investment in.

  4. "What right does the government have to decide what levels of risk a private citizen is willing to take?"

    Its for your own good citizen. Also you didn't earn that so you can't risk that.

  5. If like TSLA or ARK your Jupiter Real Estate has rapidly grown in price in the last couple years it’s worth considering as is Bitcoin which has as much fundamental value. Jupiter Real Estate has the advantage over Bitcoin in not consuming a lot of energy on earth.

    Earth Real Estate has often had speculative markets in Land long before it had any practical value. Ohio Valley real estate in the 18th century was about as practical as Jupiter.

  6. It’s work noting that besides the 5 ARK ETFs, K,Q,F,W,G – there are two other Ark ETFs PRNT that invests in 3D Printing sector and IZRL that invests in Israeli innovative technology companies.

    Both probably have a bit of overlap with companies that might end up in ARKX.

  7. Yes, ARK'S Genomic Revolution Multi-Sector ETF (ARKG) has a lot more potential for explosive growth this coming decade.

  8. "Too many people think lower launch costs equals profit." True, lower launch costs do not equal profits, but that is not the point. What it does do is create opportunity for growth by lowering capital investment requirements for future projects. Capital investment requirements have been artificially inflated due to government influences, and with those constraints expiring there will be more opportunity for those with the imagination and access to resources to take advantage of. This creates a wave of progress which may not exist today, but in 10-20 years? Entirely possible. Early investors take the greatest risk, but also reap the greatest rewards for successfully catching that wave.


  9. Am I missing something?
    This is a mutual fund that has existed since 2018 but is only offered on the japanese market.

  10. I'm really curious of how large a fraction of that ETF will consist of SpaceX. Everybody wants to buy a piece of it, but very few can. If it's a large fraction then many people would like to join. But I think Ark invest has a rule than none of the holdings can be bigger than 10%..? In which case the fund is much less interesting…

    Side note: Isn't it insane that federal rules mandates that only "accredited investors" – i.e. having a lot of money (2 million USD?) – are allowed to invest "pre-IPO securities"? What right does the government have to decide what levels of risk a private citizen is willing to take? It's not like there are no other high risk investments where it's possible to loose money.

  11. "In any way you can" is the problem, as you state. BO and SpaceX are not avail. But they exemplify the overall opportunity. ARKX may be the best right now. Another way to invest is to learn robotics. Just forget Mars!

  12. What overall opportunity? Other than SpaceX (which isn't a publicly traded company) no one is making money there presently or has a solid plan to do so. ARK X isn't. They're just a start up investment fund with a hazy sales pitch about declining launch costs. Too many people think lower launch costs equals profit. The reality is that it's all just speculation at this point. I wouldn't encourage anyone to invest in space until I could point to a specific stock which is backed by a clearly defined business plan and solid earnings potential. Without that you're just throwing your money away.

  13. I am selling prime real-estate on Jupiter. Land is always in short supply. Land ALWAYS appreciates. Apply quick.

  14. I'm not into the money prediction business at all, just the overall opportunity. When you start talking individual stocks, too much chaos. Which is what the story is about, for this one ARKX combo deal.

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