Company Interview / The space race exposure taking off

Key points:

Space commercialisation seen as a major long-term growth theme BetaShares launches BetaShares Space ETF targeting pure-play space companies Strong global flows into space-focused and tech-related ETFs Investors reportedly continue net buying in $NMDC and quality tech despite volatility

The commercial space sector is emerging as a major growth theme, according to Alex Holmes from BetaShares, who highlights rising investor interest ahead of a potential SpaceX IPO in June. Holmes notes that the global space economy is estimated around US$680 billion and is projected, by some forecasts, to reach US$1.8 trillion by 2035, driven by falling launch costs and new revenue streams such as satellite internet and Earth observation.

Holmes points to companies such as SpaceX, Rocket Lab and Planet Labs as examples of businesses enabling this expansion, citing Starlink’s growing subscriber base as an illustration of how space infrastructure can generate recurring revenue. To capture this trend, Holmes outlines a new BetaShares ETF, the BetaShares Space ET, described as the first ASX-listed pure-play space exposure. The fund is set to hold about 30 stocks, including Rocket Lab and Planet Labs, with a focus on companies deriving significant revenues from the space value chain.

Holmes observes strong global flows into space-focused ETFs, with about US$2.1 billion reportedly entering such products this year. More broadly, Holmes states that flows at BetaShares remain skewed to international equities, including Nasdaq 100, with continued net buying in high-quality US and Australian tech names despite market volatility and geopolitical uncertainty.