ARK's New Space ETF: Should You Invest in It?

For investors running out of places to search for growth, outer space might offer some possibilities. At least, that's probably what ARK is hoping for with the launch of its new space-themed fund: ARK Space Exploration & Innovation ETF (BATS:ARKX).

In the fund's description and objective, ARK says that +80% of its assets will be invested " in domestic and foreign equity securities of companies that are engaged in the Fund’s investment theme of Space Exploration and innovation." This can range from 3D printing and energy storage companies that help with space exploration to businesses that are involved with aerospace.

With 39 stocks in the fund as of April 1, this isn't a terribly diverse fund and the typical number of holdings won't go higher than 55. The top holding is Trimble (NASDAQ:TRMB), whose advanced tech serves a variety of different industries, helping companies to manage assets.

You may have expected to see Virgin Galactic Holdings (NYSE:SPCE) near the top of the list. Its ticker, after all, nearly spells 'space.' While it's in the fund, it is down at the number 20 spot at just 1.97% of the fund's weight. Both Alphabet (NASDAQ:GOOG) and Amazon (NASDAQ:AMZN) rank higher at 2.8% and 2.99%, respectively.

And so while there is some exposure to futuristic stocks in here, there are many that you can find in other growth-oriented portfolios. The fund sounds exciting but don't expect to find some hidden space stocks you probably haven't heard about in here. And with an expense ratio of 0.75%, it isn't a terribly cheap ETF, either.