VanEck lists a space-industry UCITS ETF on European exchanges

VanEck has a space fund in Europe now. The VanEck Space Innovators UCITS ETF started trading Tuesday on the London Stock Exchange in dollars and pounds, and on Deutsche Börse Xetra in euros. Dollar and euro share classes carry the ticker JEDI; the sterling line trades as JEDG. ETF Strategy reported the launch.

The fund tracks the MVIS Global Space Industry ESG Index, a pure-play basket of companies across the space business. The growth case laid out in the report rests on falling launch costs from reusable rockets, smaller satellites, and demand for more data capacity from 5G broadband and the metaverse. Morgan Stanley research cited there puts the commercial space sector at about $350 billion today. The same research sees $1 trillion by 2040. The report also points to satellite-based climate monitoring and a space-tourism market that has already collected millions in flight deposits.

“A new space age has begun,” VanEck Europe CEO Martijn Rozemuller said in the launch statement. Governments are returning to space, he added, but increasingly relying on private companies to build and operate the technology.

The metaverse hook is the part worth watching. Thematic funds are sold on a story, and this one attaches a near-term demand story to a 2040 revenue target. That is a long way out. If the story slips, advisors have a difficult conversation on their hands. At least the ticker is easy to remember.