Today marks the anniversary of Apollo 11 moon landing.
It's hard to believe - 50 years ago today, Neil Armstrong became the first man to step on the moon. He was followed by Buzz Aldrin. All the while, Michael Collins circled the moon in the Columbia spacecraft, waiting for their return.
Of course, you don't have to fly to space to invest in it! But, should you?
Three months after launching the world's first pure play space ETF, founder of Procure Am space ETF (UFO) - Get Procure Space ETF Report Andrew Chanin sat down with TheStreet and broke down all an investor needs to know about getting exposed to space.
First off, Chanin noted not all companies whose revenues comprise the $400 billion total market for the 'space industry' are 100% weighted towards space. And when looking at any company deriving revenue related to space activities, an investor should understand it's difficult to pick the companies that will take the most market share.
In steps Chanin's ETF.
Firstly, four of the holdings are Honeywell (HON) - Get Honeywell International Inc. Report , Boeing (BA) - Get The Boeing Company Report , AT&T (T) - Get AT&T Inc. Report and Sirius (SIRI) - Get Sirius XM Holdings Inc. Report . Those are all exposed to space but nowhere near 100%, on net.
Scratching the old head yet? Chanin explains.
"So those are just three [four] of the holdings," Chanin said. "Those are more diversified aerospace defense, industrial names, but they do have a very large exposure to the space industry. However, if you actually look at the majority of the funds -- roughly over 80% of the fund is actually allocated to these pure play space names that most people aren't familiar with. So there you might find a lot of satellite manufacturers and operators launch equipment companies, ground equipment companies."
Here are three holdings in the fund closer to a pure play on space:
- Maxar Technologies (MAXR) - Get Maxar Technologies Inc. Report
- Intelsat (I) - Get Intelsat S.A. Report
- Trimble (TRMB) - Get Trimble Inc. Report
Related. Investing in Space -- Do's and Don'ts in $400 Billion Industry