[HN Gopher] ARK's New Space Exploration and Innovation ETF (ARKX...
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       ARK's New Space Exploration and Innovation ETF (ARKX) Launches
       Tomorrow
        
       Author : vvincendon
       Score  : 45 points
       Date   : 2021-03-29 19:23 UTC (3 hours ago)
        
 (HTM) web link (ark-funds.com)
 (TXT) w3m dump (ark-funds.com)
        
       | subsubzero wrote:
       | I don't really get alot of these companies for that ETF, I would
       | pick:
       | 
       | Virgin Galatic - space tourism, long range terrestrial flights.
       | SpaceX - (Private) but a good pick for who takes the vanguard of
       | space exploration. Boeing - maker of one of the next gen rockets.
       | Planet Labs - (Private) satellite company making micro
       | satellites. Lockheed Martin - Lots of exposure to space, rockets,
       | unmanned drones etc.
        
         | simonh wrote:
         | A lot of SpaceX fans would disagree with having Boeing and
         | Lockheed on the list because they see them as old space, locked
         | into the failing model of bloated cost plus contracts for
         | wasteful expendable rockets that's now doomed.
         | 
         | I'm a SpaceX fan too, but if SpaceX cut costs to orbit by 10x
         | or 100x someone is going to need to manufacture all the huge,
         | powerful satellites, space stations, Mars habitats, probes and
         | resource utilisation gear SpaceX will be launching. That's
         | Boeing and Lockheed, they have a crapton of experience making
         | commercial and scientific space hardware. They'll make a
         | fortune.
        
       | elihu wrote:
       | It seems like the main company everyone would be buying if they
       | were public is SpaceX. So, that leaves space launch companies
       | that are being crushed by SpaceX, and other companies that can
       | make other space-related products or otherwise profit from space
       | exploration.
       | 
       | My impression is that we're getting really close to being able to
       | launch substantial payloads to Mars relatively cheaply, but now
       | that it's time to start packing we don't know what to send. There
       | should be whole industries gearing up to manufacture space suits,
       | rovers, habitats, habitat construction equipment, mining and
       | earth-moving (or is the proper term Mars-moving?) equipment,
       | giant Mars-suitable solar arrays, equipment to generate methane
       | from solar power, water, and C02, and so on. Maybe all that's
       | happening behind the scenes in a non-visible way, but still it
       | seems like there's an opportunity there.
       | 
       | I couldn't help noticing that ARK's logo looks suspiciously like
       | the logo for the Outer Planets Alliance from The Expanse. Too bad
       | their ticker isn't BLTALWDA.
        
         | PeterisP wrote:
         | Who would be the customers of such industries manufacturing
         | stuff for Mars? Is there any significant demand (in the
         | economic sense - not expressed opinion, but willingness to pay
         | large amounts of money) for that?
         | 
         | As far as I see, none of the governments have expressed intent
         | for large scale funding of such payloads to Mars, and there
         | seems to be nothing so valuable on Mars that would justify
         | investments into habitat construction just to extract some
         | resources for commercial purposes. It's not even commercially
         | worthwhile to mine stuff in Antarctic and the ocean floor
         | (except for oil), and those are much cheaper to access and mine
         | than Mars.
         | 
         | The current motivation for going to Mars is not a commercial
         | opporunity, it's mostly exploration, because it's there - and
         | as such, we're limited by the amount people (individuals as
         | well as nations) are willing to spend on that i.e. consume for
         | their ideals/desires, not invest with reasonable expectation of
         | profit. And that "frivolous spending budget" isn't enough to
         | launch whole new industries.
        
         | stcredzero wrote:
         | _My impression is that we 're getting really close to being
         | able to launch substantial payloads to Mars relatively cheaply,
         | but now that it's time to start packing we don't know what to
         | send._
         | 
         | We should industrially colonize the Moon. If we can produce
         | oxygen, aluminum, titanium, iron, and glass on the Moon, it
         | will make a bunch of other space infrastructure a lot cheaper.
         | Solar Power satellites would become feasible, and then we
         | wouldn't need fusion outside of having The Expanse-level of
         | space military tech and other ultra high-spec space vehicle
         | needs. And if we did have fusion, He3 would practically be a
         | side effect of mining the other materials.
         | 
         | Also, no natives with cultures and lives to ruin.
        
           | PeterisP wrote:
           | If the justification investing into space/moon infrastructure
           | will make constructing further space/moon infrastructure
           | cheaper, then that's a circular argument, it's the "how, not
           | why" about the most efficient way to produce some terminal
           | goal, but it does not assert how large the benefit of that
           | terminal goal is going to be.
           | 
           | For earth needs, it's cheaper and simpler and more efficient
           | to mine titanium right here. There's a reasonable argument
           | that mining all these things for space needs could be more
           | efficient if done "on site", however, what are those space
           | needs that will ultimately somehow benefit the people of
           | Earth in a way that's more efficient than doing it down here?
           | 
           | If the end goal is to produce power, no matter how you invest
           | into space tech, IMHO it's going to be much more efficient to
           | build large quantities of solar panels on Earth and place
           | them in Sahara desert, than to construct a large-scale solar
           | panel industry on the moon to have the same quantity of power
           | through satellites. Sure, they'd be cool, but that's not a
           | justification.
           | 
           | When/if there's a resource shortage on earth causing some
           | minerals to be orders of magnitude more expensive than today,
           | _then_ it would be worthwhile, but not yet.
        
             | outworlder wrote:
             | > If the justification investing into space/moon
             | infrastructure will make constructing further space/moon
             | infrastructure cheaper, then that's a circular argument
             | 
             | Not really. If we have mining AND manufacturing
             | capabilities outside Earth's gravity well, we can
             | manufacture things very cheaply. Either things that require
             | microgravity to be made, or things to be used in space. For
             | instance, satellites. It would be much cheaper to build and
             | launch them from the Moon.
             | 
             | We could manufacture components which require vacuum and or
             | microgravity on lunar orbital stations.
             | 
             | > IMHO it's going to be much more efficient to build large
             | quantities of solar panels on Earth and place them in
             | Sahara desert
             | 
             | How are you planing to send that power to, for instance,
             | the United States? Disregarding the massive infrastructure
             | requirements, there are serious power losses.
        
           | [deleted]
        
         | iamacyborg wrote:
         | My money would be on Planet if they were public.
        
       | tedunangst wrote:
       | Where is ARKA, the etf of ark etfs?
        
         | PascLeRasc wrote:
         | That's ARKK.
        
         | whatok wrote:
         | You have a small taste of that in this with the second largest
         | holding PRNT.
         | 
         | https://ark-funds.com/3d-printing-etf
        
       | greatgib wrote:
       | I expected a fund focusing on innovative stocks but instead it
       | looks like a lot of old school beasts that everyone would like to
       | die such as boeing, thales or lockheed...
        
         | consumer451 wrote:
         | That was my initial thought as well. But I guess the companies
         | in which I'm actually interested are all privately held.
        
       | gopalv wrote:
       | Most interesting think about this ETF is that it has possible
       | positive exposure to an eventual SpaceX IPO.
       | 
       | When SpaceX does go IPO, I'm sure Ms. Wood will be first in line
       | to pick up some to roll into this ETF - so I think of this like a
       | SPAC more than as a pure ETF.
        
         | jiofih wrote:
         | Eh. More speculation on an already deflating market.
        
         | ra7 wrote:
         | Why not just buy GOOGL if you want exposure to only SpaceX? Or
         | some Fidelity or Baron's funds that hold SpaceX.
        
           | PascLeRasc wrote:
           | Does anyone know how those get worked into a mutual funds
           | value? I actually have one of those Fidelity SpaceX funds in
           | my 401k but I don't understand how it works.
        
         | DevKoala wrote:
         | You can already buy a chunk of SpaceX by buying Baron Partner's
         | shares.
        
           | repsilat wrote:
           | 3% SpaceX, 47% TSLA. Not exactly a pure bet, but I guess you
           | could short some of the others?
           | 
           | https://finance.yahoo.com/quote/bptrx/holdings/
        
       | gvhst wrote:
       | A list of holdings leaves me scratching my head: - JD.com? -
       | Netflix? - Meituan? (Chinese Food Delivery) - John Deere?
       | 
       | Either these are some very forward looking plays, or there
       | weren't enough public securities to fill a diversified, thematic
       | basket.
       | 
       | https://ark-funds.com/wp-content/fundsiteliterature/holdings...
        
         | whoisjuan wrote:
         | Someone on Twitter was suggesting that they picked Meituan only
         | because it has a delivery robot called Space-Pod. Lol.
         | 
         | Or in other words, they did a Ctrl+F: "space", in the filings
         | of publicly traded companies and they built the index with the
         | ones that had a match for the word.
         | 
         | Stupid? Yes. Possible? Absolutely.
        
         | btkramer9 wrote:
         | As far as John Deere goes I think it has to do with the
         | presumed equipment that they could design and send to mars for
         | colonization.
         | 
         | There was a conference SpaceX put on a year or two ago with a
         | bunch of companies traditionally un-releated to space but would
         | be in a good positions to start producing needed goods that
         | SpaceX would want to send on the first 100s of Starships.
         | 
         | Perhaps other companies here fit that list
        
         | TheAdamAndChe wrote:
         | I am reading Peter Thiel's book about startups, and he
         | discusses the nature of technological monopolies. It says how
         | most tech monopolies have common attributes: proprietary
         | software, network effects, economies of scale, and a solid
         | brand. It looks to me like those companies have all of that.
        
           | gvhst wrote:
           | Yes, but tech monopolies != Space Exploration
        
             | MR4D wrote:
             | I google'd it just for fun, but I thought you had made a
             | really good point....
             | 
             | Sadly, and much to my disbelief, you are incorrect:
             | 
             | MSFT: https://azure.microsoft.com/en-us/blog/introducing-
             | azure-orb...
             | 
             | FB: https://www.wired.com/story/facebook-confirms-its-
             | working-on...
             | 
             | GOOGL: https://earthengine.google.com/
             | 
             | AAPL: https://www.forbes.com/sites/johnkoetsier/2019/12/20/
             | apple-b...
             | 
             | AMZN: https://www.forbes.com/sites/jonathanocallaghan/2020/
             | 07/31/a...
             | 
             | If I had more time, I'd run down more companies (Like, who
             | even knows what Slack might be planning! )
        
         | 11thEarlOfMar wrote:
         | One of the categories targeted is companies that will benefit
         | from space-focused enterprises. This includes space companies
         | that improve Internet infrastructure.
         | 
         | E.g. if SpaceX is successful with Starlink, it will increase
         | the total available market for Netflix and Netflix revenue
         | increases. JD and Meituan can access more customers, though it
         | is as likely to be via a China-raised LEO fleet. John Deere
         | from Internet-connected autonomous combines and more precise
         | weather and crop health analysis from space informing them
         | where and how to service the crops.
         | 
         | Seems a little weak-linked to me, and the best I could do to
         | defend this portfolio is that it's taking a super long view.
         | But that is their rationale.
        
           | gvhst wrote:
           | How many of Meituan's customers are internet constrained. Not
           | many would be my guess...
        
             | justicezyx wrote:
             | No, China has a very good coverage of 4g infrastructure.
             | Need of satellite is very limited, if any.
             | 
             | Satellite in China is more useful for disaster recovery and
             | as independent technology itself.
        
               | 11thEarlOfMar wrote:
               | A strikingly small % of China's land area has 4G service.
               | It's focused on the high-population areas, but at best,
               | it appears to be 10% of the land area[0]
               | 
               | 900 Million of China's 1.4 Billion citizens have Internet
               | access. That leaves 36%, or, 500,000,000 people, more
               | than the population of North America, as an untapped
               | Internet market.
               | 
               | [0] https://www.nperf.com/en/map/CN/-/14505.China-
               | Unicom/signal/...
               | 
               | [1] https://www.statista.com/statistics/795193/china-
               | share-of-mo...
        
               | justicezyx wrote:
               | LMAO
               | 
               | Another HN China expert poped up...
               | 
               | The first link you provided is from China Unicom, the 3rd
               | player in China, behind China mobile and China telecom,
               | whose revenue in 2019 is 7B+, 9B+, 18B+, strikingly %, of
               | course...
               | 
               | http://www.xinhuanet.com/tech/2020-10/04/c_1126573258.htm
               | The village coverage is 94%+ according Xinhua.
               | 
               | Is Xinhua accurate, of course not. But is it more
               | accurate than some random statistic site? Highly
               | possible...
               | 
               | Your 2nd link is about share of mobile internet users
               | among the all internet users. What's it's relationship to
               | your claim?
        
               | 11thEarlOfMar wrote:
               | No, not a China expert. Just wondering, like other HNers,
               | why ARKX includes these Chinese e-commerce firms and
               | trying to find an explanation. If you know of one that
               | can pass for logical, I'd be glad to hear it.
               | 
               | As far as my own efforts, from the source cited, (which
               | is 'nperf.com' and as far as I can see, not associated
               | with any of the 3 services), You can see the coverage
               | area of each service by selecting their drop downs. I
               | looked at all 3, China Mobile, China Telecom, China
               | Unicom. The maps of the three services show very limited
               | coverage areas for all 3 services, relative to the land
               | area of China. If those maps are inaccurate, perhaps you
               | can point me to one that is accurate.
               | 
               | Thanks for your link. It states that the service is
               | available in most villages, but that does not mean in and
               | of itself that the villagers are using it. The additional
               | information of 900 million Internet users vs. 1.4 billion
               | citizens suggests they are not all using it. To that
               | point, your link indicates you're on target, since the
               | satellites don't deliver directly to the brain and
               | they'll need a device that would put them on 4G anyway.
        
           | nerdponx wrote:
           | Mechanized agriculture already uses GPS; maybe there is other
           | satellite-based agritech on the horizon.
        
       | consumer451 wrote:
       | I'm not sure exactly what I expected to find in the holdings
       | list, but there are some surprises to me in there. John Deere and
       | Netflix would be two of them. However, I am a total ETF neophyte.
       | Does anyone have any insights as to why companies like this would
       | fit this category?
       | 
       | https://ark-funds.com/wp-content/fundsiteliterature/holdings...
        
         | cinntaile wrote:
         | John Deere probably does a lot of automation research as well
         | as satellite imagery research, both are "skills" necessary for
         | space.
         | 
         | Netflix I have no idea, but they're pretty good at shipping
         | image and sound data around on all kinds of wonky internet
         | connections I guess?
         | 
         | It would be interesting to know how and why they select the
         | proportions of individual stocks.
        
       | ZeroCool2u wrote:
       | Regardless of your thoughts on ARK, Cathie Wood, and ETF's in
       | general.
       | 
       | This fund is particularly interesting, because it might be one of
       | the only chances for non-institutions and non-accredited
       | investors to get early exposure to an entirely new avenue of
       | resource gathering. Non-planetary mining, etc. Very exciting!
        
         | iamacyborg wrote:
         | Why would this get you more exposure vs simply buying the same
         | public shares this ETF is made up of?
        
           | ZeroCool2u wrote:
           | The line of thought is that ARK will get a chance to purchase
           | IPO shares of say SpaceX for the ARKX fund at a price that
           | your average investor won't have available to them.
        
             | [deleted]
        
         | hahahahe wrote:
         | And you work at the Fed? God help us.
        
       | Rebelgecko wrote:
       | Their holdings are interesting. For specific companies, they're
       | definitely weighted more heavily towards "OldSpace"
       | 
       | Most of the non-space companies they have have pretty clear
       | connections as suppliers (Xilinx, Nvidia, TSM). However some seem
       | like a stretch unless I'm missing something. Maybe John Deere is
       | planning on creating their own GNSS constellation and adding
       | Netflix support to their tractors? I also can't imagine that
       | space is a large part of Autodesk's customer base
        
       | ericmay wrote:
       | Really was hoping for some direct exposure to SpaceX here but
       | that seems to be lacking. Hard pass.
       | 
       | I like ARKG and ARKF and the ARK(Robotics don't remember the
       | letter) are of interest. Personally hold ARKG.
        
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