Company Interview / To the moon: Aussie interest in SpaceX skyrockets ETF demand beyond $350B

Key points:

Strong inflows into technology and thematic ETFs, including space and AIAustralian tech leaders such as Technology One, Pro Medicus, WiseTech Global and Xero seen as AI beneficiaries Cybersecurity names like Palo Alto Networks and CrowdStrike viewed as structural AI winners

Hugh Lam from Betashares states that Australian ETF assets surpass $350 billion as local investors seek efficient exposure to structural themes such as space, artificial intelligence and cybersecurity. Lam highlights strong interest in the new British Space Industry ETF, which is positioned to provide exposure to the broader space ecosystem, including potential future listings such as SpaceX, alongside segments like space systems, launch services and satellite Earth observation.

Lam notes that technology-focused ETFs are attracting robust inflows as sentiment toward AI shifts. According to Lam, the early-year “AI apocalypse” narrative weighs on software, but markets now increasingly view AI as additive to software platforms. Australian names such as Technology One (ASX:TNE), Pro Medicus (ASX:PME), WiseTech Global (ASX:WTC) and Xero (ASX:XRO) are seen by Lam as rerating sharply as investors focus on local industry leaders. Globally, Lam points to cybersecurity firms such as Palo Alto Networks and CrowdStrike as potential long-term AI winners due to deep data moats and advanced defence capabilities.

Lam expects volatility around the high-profile US space IPO but sees long-term investors using ETFs to capture the “space megatrend”. Despite proposed capital gains tax changes, Lam views ETFs as remaining a core, tax-efficient tool for Australians seeking long-term wealth creation amid ongoing housing affordability challenges.