BlackRock and STOXX launch iShares ETF for space tech

BlackRock and STOXX have launched the iShares Space Technologies UCITS ETF (STAR), which tracks the STOXX Global Space Satellites and Drones index. The ETF provides exposure to companies involved in satellite services, launch vehicles, drone systems and related autonomous technologies and is listed as a UCITS ETF available to European investors.

STAR follows an expanded collaboration between BlackRock and STOXX Ltd., part of the ISS STOXX group. The index selects companies with significant business tied to space, satellites and drones, including firms participating in projects connected to the Artemis-era space ecosystem.

STOXX applies FactSet Revere Revenue and Supply Chain Relationships datasets to identify companies whose revenue streams and supplier links show substantial involvement in the space and drone theme. The index rules focus on firms with clear revenue exposure or defined supply-chain roles linked to satellites, drones or launch systems.

The index covers multiple parts of the space value chain, including rocket manufacturers, satellite operators, companies that build autonomous systems and firms providing analytics that use space-derived data.

STOXX and BlackRock cite research that estimates the global space economy at about $630 billion in 2023 and projects growth to $1.8 trillion by 2035. The research identifies five industries expected to produce more than 60% of that growth: supply chain and transportation, food and agriculture, government and defence, retail and consumer services, and digital industries.

Axel Lomholt, General Manager at STOXX, commented: “Space is a fast-evolving, cutting-edge investment theme, and we are delighted to collaborate with BlackRock. Leveraging STOXX’s established, leading expertise in thematic indexing, the STOXX Global Space Satellites and Drones index provides investors with an innovative way to access this dynamic opportunity.” Omar Moufti, thematics and sectors product strategist at BlackRock, added: “As launch costs fall and satellite adoption rises, the space economy is becoming an increasingly important long-term investment theme. STAR captures the full space value chain, spanning rockets, satellites and autonomous technologies, with each layer supporting the next. STAR’s fast-track access and thematic purity create a differentiated way to participate in this expanding opportunity set.”

Index documentation from STOXX and BlackRock notes that much of the expected growth is projected to come from commercial applications using satellite data and from continued investment in launch capacity and satellite constellations.