Company Interview / The $1.7 trillion rocket ready for takeoff

Key points:

Reaper sees a structural, long‑term “cislunar economy” theme centred on Artemis Notes limited but growing commercial space exposure via (NYSE:LMT), (NYSE:BA) and (NYSE:NOC) Prefers diversified ETFs such as $ARKX and $UFO for thematic access Views the rumoured US$1.7 trillion SpaceX IPO as pivotal but richly valued

The renewed space race is shaping up as a long‑term investment theme, according to Daniel Reaper from Grey Street Partners, who highlights the shift from government‑led exploration to commercially driven projects. Reaper states that NASA’s Artemis programme, focused on building a sustained lunar presence and a broader “cislunar economy” between Earth and the moon, represents a structural change rather than a short‑term initiative, underpinned by bipartisan support in the United States.

Reaper points out that NASA now spends about 0.4% of the US federal budget, far below the Apollo era peak of around 4%, with private firms filling the gap. He notes that investors can gain exposure through major prime contractors such as Lockheed Martin (NYSE:LMT), Boeing (NYSE:BA) and Northrop Grumman (NYSE:NOC), which supply key Artemis hardware. However, Reaper argues that space‑related contracts remain a relatively small share of their revenue and sees them as imperfect pure plays, with some ESG concerns due to defence exposure.

For broader thematic exposure, Reaper favours space‑focused ETFs such as ARK Space Exploration & Innovation ETF ($ARKX) and Procure Space ETF ($UFO). He views the forthcoming SpaceX IPO as potentially the largest in history, with rumoured valuation around US$1.7 trillion, describing it as a highly profitable, high‑growth business but trading on demanding valuation metrics that make immediate participation challenging.