Investment fund manager Cathie Wood has probably been the biggest beneficiary of last year’s tech bull market. Several of her key holdings have turned into multibaggers along the way, making her one of the most prosperous money managers in the industry. This year, she launched a new exchange-traded fund (ETF) focused on cutting-edge space tech.
While the ETF is listed in America, there is a version of the fund listed in Canada that you can access right away. Here’s a closer look.
Cathie Wood’s space ETF
Cathie Wood’s ARK Funds has an ongoing partnership with Toronto-based Emerge Canada Inc. The partnership allows the two teams to replicate the American funds on Canadian stock exchanges.
ARK funds that target global innovation, genomics, and artificial intelligence have counterparts in Canada. Now, the teams have listed the Emerge ARK Space Exploration ETF on the NEO exchange. This ETF holds the exact same portfolio as Cathie’s Space Exploration fund.
Canadian investors could add this domestic ETF to their portfolios for exposure to this exciting sector. The portfolio includes defence contractors, space tech innovators, and early adopters that could benefit from commercial space technologies in the near future.
However, there are some noteworthy Canadian space-tech firms that haven’t made it into Cathie’s fund. Investing in these underrated Canadian tech stars could be an alternative way to bet on the future of this nascent industry.
Early pioneers in the space tech sector such as Maxar Technologies and MDA Ltd. (previously known as MacDonald, Dettwiler and Associates) haven’t made it onto the ETF. These two firms used to be a single entity. Now Maxar has restructured while MDA is about to be publicly listed soon.
Both companies have been developing and deploying groundbreaking space tech for years. Maxar operates a constellation of satellites in low-Earth orbit that offer corporations and government agencies geospatial imagery. Meanwhile, MDA created the iconic Canadarm that was integrated into the International Space Station in 1981.
Both companies are deeply entrenched in the global space race and have a vast collection of proprietary technology that puts them ahead of the game. That’s what makes them ideal targets for Cathie Wood’s latest ETF. However, Canadian investors should certainly consider adding these underrated gems to their portfolio directly.
After all, there’s plenty of space (pun intended) for several winners in this multi-trillion-dollar industry.
Cathie Wood has recently launched her Space Exploration ETF. This fund targets emerging tech stars in a nascent industry that could someday be worth trillions. Fortunately, there is a mirror fund listed in Canada that local investors can bet on for access to this opportunity.
There are also some intriguing space-tech companies listed on the Toronto Stock Exchange that deserve your attention. In the near future, more stocks and investment opportunities could emerge as this sector matures. But for now, these are the best ways to make an early bet on this exciting new tech sector.
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Fool contributor Vishesh Raisinghani has no position in any of the stocks mentioned. The Motley Fool recommends MAXAR TECHNOLOGIES LTD.