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SpaceX & Beyond: A New ETF for the Space Economy

When it comes to space stocks, Elon Musk’s SpaceX (SPCX) is clearly the big kahuna. After all, the company just completed the largest initial public offering (IPO) in history, rapidly joining the $1 trillion-plus market capitalization club in the process. However, the broader space economy extends beyond a single company.That’s why it pays to be choosy with space-related ETFs. On that note, a new offering may be worthy of closer examination by investors. The WisdomTree Space Economy Fund (WSPC) debuted last week. Indeed, the new actively managed ETF is a solid proxy for SpaceX. It allocates 14.19% of its weight to that marquee space stock, but taps into the broader space ecosystem. WSPC’s breadth is relevant to long-term investors. By some estimates, the broader space economy could be valued at $1 trillion (or more) in less than a decade.WSPC Supported by Bright Fundamental OutlookHome to approximately 50 stocks, the newly minted WSPC is positioned to benefit as space becomes increasingly commercialized. The federal government’s increasing related partnerships with private enterprise could help the ETF, too. “Private companies are playing an increasingly central role, partnering with NASA while also investing heavily to unlock the commercial potential of space. The number of objects launched into orbit, including satellites and rockets, has grown at an annual rate of roughly 20% between 2020 and 2025,” noted Morgan Stanley. There’s bipartisan support for expanding U.S. space leadership and recognition that space is central to national security. Political winds often alter direction, but there appears to be consistency on the space front. At a minimum, the current administration is committed to space funding. “The Trump Administration has proposed a record $1.5 trillion in defense spending for 2027, including a 77% increase in the Space Force budget—from $40 billion this year to $71 billion. Through the Artemis program, NASA aims to return humans to the moon in 2028 and build a base for continued lunar operations,” added Morgan Stanley. WSPC heavily tilts toward communication services and industrial stocks— sensible sector weights when considering the space objective. The new ETF charges 0.75% per year. For more news, information, and analysis, visit the Modern Alpha Content Hub.DisclosuresThis article was prepared as part of WisdomTree’s general paid sponsorship of VettaFi | ETF Trends. This specific content within and any opinions expressed therein belong solely to VettaFi and do not reflect the opinion or analysis of WisdomTree, its employees, or its affiliates. Content published on VettaFi | ETF Trends is provided for educational purposes only and should not be considered investment or tax advice. For investment or tax advice, please consult a financial professional.  WisdomTree is an independent company, unaffiliated with VettaFi | ETF Trends. WisdomTree has not been involved with the preparation of the content supplied by VettaFi | ETF Trends. It does not guarantee, or assume any responsibility for its content.

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