Global X launches LUNR ETF targeting space-economy firms

Global X ETFs Europe has launched the Global X Space Tech UCITS ETF (LUNR). The fund will list on the London Stock Exchange and Deutsche Börse Xetra and aims to give investors exposure to companies tied to the commercial space economy. The ETF tracks the Mirae Asset Space Tech UCITS Index and carries a total expense ratio of 0.50%.

The Mirae Asset index is revenue-based and includes firms from developed and emerging markets that derive at least 50% of their revenues from space-related activities. Eligible businesses include those involved in satellite communications and data services, rocket launch and reusable launch systems, space technologies and components, and space transportation, tourism and exploration.

Global X cited lower launch costs, advances in reusable rockets and growing demand for satellite-enabled communications, navigation and data services as factors expanding commercial activity in the sector. The firm says LUNR focuses on companies where space-related activities make up a meaningful portion of revenue rather than firms with only incidental exposure.

Andrew Ye, CFA and Thematic Investment Strategist at Global X ETFs Europe, described the space economy as approaching an inflection point: “Falling launch costs and increasing private sector participation are broadening the industry’s addressable market and expanding the range of commercial applications for space-based technologies.”

Gea Blumberg, Co-Head and Head of Business Development at Global X ETFs Europe, noted that LUNR’s methodology prioritises companies where space-related activities form a core part of the business model: “LUNR is designed to provide targeted exposure to this emerging theme through a pure-play methodology, prioritising companies where space-related activities form a core part of the business model rather than a secondary source of revenues.”

Constituents span the space value chain, including manufacturers of components and systems, operators of satellite services, launch providers and firms developing infrastructure and transport services for commercial space operations. Global X will list the ETF on two major European exchanges to provide access to investors across the region.

The launch follows a trend of index providers and asset managers creating products that isolate firms with substantial revenue exposure to space activities, a sector that has seen increased private investment and technological development in recent years.