NH Investment & Securities has developed the "iSelect U.S. Space and Aerospace Index," which comprehensively covers the space industry value chain, as related themes gain attention ahead of the anticipated IPO of Elon Musk's space company SpaceX.
According to NH Investment & Securities on the 9th, the newly launched index tracks not only rocket launch vehicles that are drawing attention in the early stages of the industry, but also satellite internet, space defense, advanced materials, and satellite information services. The company explained that the index differentiates itself from existing space and aerospace indices by evenly covering the entire space industry value chain.
As of the 6th of this month, constituent stocks include Rocket Lab (rocket launch vehicles), AST SpaceMobile (satellite communications), Intuitive Machines (space exploration and lunar infrastructure), EchoStar (satellite communications), Planet Labs (satellite information services), Kratos Defense (space defense industry), and TransDigm (aerospace components).
NH Investment & Securities noted the high correlation between the space industry and the defense industry. Space companies equipped with missile defense and reconnaissance-surveillance systems tend to show relative strength when geopolitical risks are heightened. This is evaluated as a sector that receives substantial benefits beyond simple themes, linked to government defense budget increases and expanded investment in space infrastructure.
The "iSelect U.S. Space and Aerospace Index" is structured to allow rapid special inclusion of up to 25% when key companies including SpaceX go public. The "KODEX U.S. Space and Aerospace" exchange-traded fund (ETF), which tracks this index, has been rapidly attracting capital with strong interest from individual investors since its listing in March this year.
"We excluded stocks with low relevance to space and precisely selected only core companies on the industry growth path," an NH Investment & Securities official said. "At this juncture where the private-led NewSpace era intersects with rising defense and security demand, this will be an optimal tool for gaining investment opportunities across the space and aerospace industry."