Public Live: The Budding Space Investment Opportunity and the Satellite Turf War

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

The space investment theme has taken the spotlight as billionaires such as Richard Branson and Jeff Bezos race to bring space tourism mainstream, and SPACs increasingly target space-related companies to bring to the public market. During a recent Public Live audio show, business host Dion Rabouin sat down with Andrew Chanin, the CEO of ProcureAM and the creator of the Procure Space ETF. Here’s a snapshot of the conversation:

Dion Rabouin: Your ETF is UFO, a space ETF. What does this ETF do? What are people investing in?

Andrew Chanin: We tried to create a thematic ETF that invests in actual space companies. In 2019, the space industry was a $424 billion industry… There are 35 companies across the world that are doing space activities, including Virgin Galactic with Richard Branson.

DR: Aside from Virgin Galactic, what are some other companies that get included in the ETF?

AC: The ETF looks to have 80 percent of the index focused on companies that derive a majority of their revenues from space. There are other important players in the space industry as well, such as aerospace and defense names. Up to 20 percent of the index can be focused on more diversified industries, including Boeing and Lockheed, which have a joint venture called the United Launch Alliance. 

DR: How do Dish, Garmin, and Sirius XM relate to space?

AC: If you take away space, those companies do not exist. Garmin specializes in GPS, which uses satellites. So many companies are beneficiaries of GPS technology. Garmin helps with navigation in your car as well as shipping companies, which need satellites and GPS. Dish Network uses satellites to broadcast television transmissions, including remote transmission. Sirius is satellite radio, so you don’t have to switch stations when you change towns.

DR: What are your thoughts about some of the negative sentiments surrounding space’s reputation as the billionaire’s playground? Could this weigh on the ETF?

AC: Space is a highly misunderstood industry. Even during the lunar landings, people were wondering why we were sending people to the moon when there are problems here on Earth. Traditionally, people associate the government with the mismanagement of funds. But NASA’s ventures have led to the development of technology that can be used back here on Earth. Hubble tech is used to detect breast cancer here on Earth. That lowers insurance and healthcare costs. Every dollar that NASA spends turns into eight to ten dollars in ROI. That is unheard of with government projects. We also wouldn’t be able to track and understand climate change without space. We use satellites to track sea levels, aridity, wildfires, hurricanes, and more. We wouldn’t understand climate change without our space-based systems. We are trying to send humans to live in permanent colonies on the moon, Mars, and beyond. If we can figure out how to sustain human life elsewhere, we can use those technologies to improve life here on Earth.

DR: What do you think about the opportunity in satellites? 

AC: There is a turf war going on in space. Many satellites are low-Earth orbit (LEO) satellites. There are just under 3,000 operational satellites in orbit. Some companies are talking about launching tens of thousands of their own satellites into space, which could cause congestion and collisions, and could create problems. This is a highly competitive area. The UFO [ETF] gives you access to many companies doing business in this arena.

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The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.