FYI: An exchange-traded fund that could soon hit Wall Street will quite literally be out of this world.
The ETF sponsor Procure ETF Trust earlier this week filed for two new funds, one of which is dedicated to outer space and the burgeoning economy related to the cosmos. The Procure Space ETF will hold companies that derive “substantial revenue from space-related activities,” including satellite-based companies, firms involved in rocket manufacturing and maintenance and space-based imagery and intelligence services.
The fund’s construction, according to the filing, will divide companies into two categories: those that derive the majority of their revenue from space-related activities, and those that have involvement in the industry but other revenue streams outside of space. The first category will comprise 70% of the index’s weighting, the filing read.
The fund will charge an expense ratio of 0.75%, which is on the high end for a passively managed fund. The SPDR S&P Aerospace & Defense ETF XAR, -0.30% , a fund that will likely have some overlap with the new space fund, charges 0.35% of assets.
Regards,
Ted
https://www.marketwatch.com/story/final-frontier-for-markets-an-etf-related-to-outer-space-could-blast-off-soon-2018-01-10/print
