Space-related holdings have been more popular than domestic blue-chip companies over the past three months, according to data from AJ Bell, ahead of the launch of SpaceX to the New York Stock Exchange on Friday.
More people bought shares in Scottish Mortgage, Seraphim Space or the VanEck Space Innovators UCITS ETF during the past three months than in blue-chip stocks Shell, BP, AstraZeneca and National Grid, the firm said, and it is not for a lack of demand for the UK stocks.
Dan Coatsworth, head of markets at AJ Bell, said: “Investors keen to join the race to space haven’t sat on their hands waiting for the SpaceX IPO. They’ve already strapped in for the journey by snapping up other space stocks and funds in recent months.
“Space-related investments feature heavily in the most popular purchases on the AJ Bell DIY investor platform over the past three months.”
Scottish Mortgage has a 21% position in SpaceX and is the most popular space-related name with AJ Bell customers, as the table below shows.
Shares in the trust are up 24% in the past month, a level which Coatsworth called “bananas”.
“People love a hot investment theme, and space is currently in vogue thanks to SpaceX’s plans to go public. A strong narrative can be a powerful draw for investors looking to generate returns, and the space story is generating significant excitement,” said Coatsworth
The trust is followed by defence company BAE Systems, although its performance has been more muted over the past year, down 1%.
Seraphim Space is the third-most popular space-related investment. It has made investors 160% over the past year and shares are up 59% year-to-date.
“Its biggest holding is ICEYE, which is building satellite-based information services, with the aim of providing access to near-real-time imagery from space. That could help to monitor natural catastrophes and hazards such as flooding, wildfires and earthquakes,” said Coatsworth.
Meanwhile, VanEck Space Innovators ETF is up 167% and invests passively in 25 companies involved across space-related activities. It has a distinct market code (JEDI), which is apt considering its involvement in the space trade, the AJ Bell head of markets said.
Holdings include Rocket Lab, AST SpaceMobile and Planet Labs – all of which appear in the above table as space favourites with AJ Bell DIY investors over the past three months.
“Rocket Lab calls itself an ‘end-to-end space company’, delivering launch services, space-related manufacturing, satellite components and flight software. It’s a major rival to SpaceX. AST SpaceMobile is a satellite designer and manufacturer, while Planet Labs is an imaging specialist,” said Coatsworth.