Space stocks lift off as investors eye Space X moment
Retail investors are increasingly backing the space economy, with new data showing the sector moving to a more established part of long-term portfolios.
Figures from Hargreaves Lansdown show Self-Invested Personal Pension (SIPP) investors remained broadly bullish through the first quarter of the year, despite a wobble in March following tensions in the Middle East.
Among the most-bought investment trusts was Scottish Mortgage Investment Trust, which holds a significant stake in SpaceX.
The trust’s exposure to the company has drawn renewed attention as expectations build around a potential IPO that could become one of the largest on record.
“There has been a lot of positive news relating to SpaceX, the largest private equity investment in the trust and likely to be a driver of demand”, said Hal Cook, senior investment analyst at Hargreaves Lansdown.
The prospect of said listing has also influenced demand across the wider sector, with investors using listed funds to gain exposure ahead of any public market debut.
Specialist space funds on the up
More targeted vehicles are also seeing a spike in interest. Seraphin Space Investment Trust, for example, which focuses on space tech firms, was among the most-bought trusts during the quarter.
The fund invests in businesses operating across satellite communications, navigation and data infrastructure, offering exposure to a range of companies within the space economy.
Recent portfolio developments have added to that appeal, with Seraphim increasing the value of its holding in US-based Xona Space Systems following a funding round.
The growing interest in space-related assets comes as the industry continues to attract capital and expand its commercial footprint.
Companies involved in satellite networks or space-based data are increasingly being seen as part of a broader infrastructure sector
And, while access to the ecosystem has largely been through listed investment trusts due to the limited number of publicly traded space firms, a potential SpaceX IPO is expected to provide an entry point into the largest private players in the market.