It's Time to Take Your Portfolio to Space

By Lou Basenese, on Tuesday, May 5, 2020

Forget about landing on the moon or Mars…

There’s a new space race in town!

This time, it involves putting “low earth satellites” the size of refrigerators into orbit. Once they’re in orbit, they can beam ultra-fast internet to connected cars, smartphones, and billions of other IoT devices.

This helps explain why investment bank UBS believes the space economy will soon be worth $1 trillion, and why longer-term estimates put the figure at $2.7 trillion.

All the titans of tech are getting in on the action, from Elon Musk and Mark Zuckerberg to Jeff Bezos.

So now it’s time to take your portfolio to space…

And today, I’ll show you one of the smartest (and safest) ways to do it…

The $64k Question

If you’re familiar with the satellite industry, you might already know one of its central truths:

This industry has not been kind to investors.

In fact, this sector is littered with failures and big losses.

What’s the problem?

As Tim Farrar, a satellite expert at TMF Associates, explains, “The lessons of prior failures like Iridium, Globalstar and Teledesic are that it’s really hard to find a viable business plan for multibillion-dollar satellite communications projects.”

Avoid These Satellite Stocks

You see, at best, satellite businesses offer a proposition for delayed gratification.

Before they can earn a dime in revenue, operators and financial backers need to spend years incurring huge costs so they can build and launch their satellites.

That’s why the major players I mentioned earlier are hemorrhaging billions of dollars right now.

And that’s why we’re steering clear of all of them — and we’re recommending that you do the same.

Instead, here’s one of the safest and smartest ways to take advantage of this exciting trend…

Introducing: Procure Space ETF

Launched roughly a year ago, the Procure Space ETF (UFO) is unique:

It’s not full of the typical aerospace and defense contractors that generate just a tiny portion of their revenue from space-related activities.

Instead, the majority of its holdings are in companies that derive at least 50% of their sales from space.

What’s more, nearly all of its ten largest holdings are in companies that own or operate satellites.

In other words, this ETF offers us the closest thing to a pure-play investment in the space race…

And thanks to its diversification across 30 companies, it can still help us reduce our risk.

Don’t Miss Out

With just $15 million in assets, this ETF is still largely unknown.

But given the growth that’s expected for satellites, I don’t expect that to last.

Furthermore, thanks to the broad market sell-off caused by Covid-19, this is a good time to invest:

At current prices, it’s trading at a ~33% discount to its historical average.

Don’t miss out!

Ahead of the tape,
Lou Basenese
Lou Basenese

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Tags: Stocks Outer Space