MarketVector Index(es) of the Month: Space

It’s a bird. It’s a plane. It’s Elon Musk?

Not exactly.

SpaceX and Elon Musk may be the most visible symbol of the commercial space race, but the bigger story is the expanding space economy. What was once defined by space exploration is now becoming an infrastructure theme across satellite communications, AI-enabled data, defense, earth observation, broadband connectivity and navigation.

That is why the MarketVector family of Space Indexes are our Index of the Month.

 

 

Beyond SpaceX: The Halo Effect Across Space Stocks

The excitement around SpaceX has created a halo effect across the public space ecosystem. Investors are not just watching one potential IPO; they are reassessing the full commercial space value chain. That value chain includes launch providers, satellite manufacturers, propulsion specialists, communications platforms, imaging companies and mission-critical hardware suppliers. These companies are helping turn space from a frontier into a functioning commercial market.

SpaceX may be the catalyst, but it is not the whole theme.

Satellites, AI and Defense: The New Space Value Chain

The next phase of the space economy may be driven by the convergence of satellites, AI and defense. Satellites collect data. AI helps interpret it. Communications networks distribute it. Defense, commercial and government users apply it. That creates a powerful value chain across earth observation, geospatial intelligence, secure communications, navigation, climate monitoring, logistics and connectivity. Space-based infrastructure is becoming more important as the world becomes more digital, more data-driven and more security-conscious.

Why the MarketVector Space Indexes Matters

The MarketVector Space Indexes matter because they turn a fast-growing but complex space economy into distinct, rules-based exposures. The MarketVector™ Space Index offers the most focused expression, targeting companies with at least 50% of revenues from space exploration, rockets and propulsion, satellite equipment, or space-based communications to deliver a pure-play 20 stock index.

The MarketVector™ Space Industry Index broadens the opportunity set, using a 90% free-float market-cap coverage target with at least 25 components, making it a broader benchmark for the listed space industry. The MarketVector™ Global Space Industry Screened Index adds an ESG-screened lens, excluding companies that fail ISS-based criteria across areas such as norm-based research, controversial weapons, sector exposure and energy extractives.

Together, the Index family gives investors multiple ways to understand the public space value chain: concentrated pure-play exposure, broad industry representation, and screened global access.

The space economy is becoming more visible, more investable and more central to how the world connects, observes, protects and processes information.

 It’s not just a bird. It’s not just a plane. And it’s not just Elon Musk. It is satellites, AI, defense, connectivity and infrastructure.

The space economy is taking off.

For more information on MarketVector Indexes, visit www.marketvector.com  

 

 

About the Author(s):

Joy Yang is the Head of Product Management and Marketing at MarketVector Indexes^™ (“MarketVector”). She is responsible for managing MarketVector products and services to accelerate innovation in financial index design and adoption. Joy brings more than 25 years of investment experience to MarketVector, having led teams delivering index and quantitative-active investment solutions at Arabesque Asset Management, Dimensional Fund Advisors, Vanguard, Aberdeen Standard Investments, AXA Rosenberg, and Blackrock. She has an MBA from the University of Chicago Booth School of Business and a Bachelor of Science in Electrical Engineering from Cooper Union’s Albert Nerken School of Engineering.

Related:

• The U.S. Regulatory Inflection Point
• MVGMMA Index Reallocates to Equity During Rally    
• AI Infrastructure