Space Economy

This basket targets the expanding space economy, which reached approximately $626 billion in 2025 and is projected to surpass $1 trillion by 2034 at a compound annual growth rate exceeding 7 percent, driven by satellite communications, Earth observation, launch services, and commercial space activities. It comprises 20 names across aerospace and defense, telecommunications infrastructure, and technology sectors, with an effective number of 16.7 holdings reflecting moderate concentration. The investment logic centers on capturing multiple layers of the value chain—from direct-to-device satellite broadband and high-resolution geospatial intelligence to suborbital space tourism and supporting hardware—positioned to benefit from declining launch costs, rising demand for global connectivity, defense applications, and data-driven insights in agriculture, climate monitoring, and security.

Key risks include technical execution failures in satellite deployment and constellation scaling, high capital intensity leading to ongoing funding needs, regulatory hurdles around spectrum allocation and orbital congestion, and potential delays from supply chain or launch dependencies that could compress timelines and valuations. With no specific warnings flagged for the basket, volatility remains inherent to early-stage space technologies. The highest-conviction position is ASTS at 8.0 percent weight, given its patented direct-to-cell technology enabling broadband connectivity from space to unmodified smartphones via partnerships with major mobile operators, addressing an enormous untapped market for remote and underserved coverage that positions it for outsized revenue inflection upon full constellation activation.