Five years ago "The Martian" drew many people into the cinema, the science fiction film bringing in some USDmn 630 around the world. In the film, Matt Damon as the main protagonist, Mark Watney, demonstrates that it is possible to survive on Mars. If Elon Musk is to be believed, people will be settling on the red planet for real in the near future. The US billionaire foresees a town on Mars that can be reached via a base on the moon. The Tesla boss is hoping to launch the first manned flight to Mars with his SpaceX company in just four to six years' time. The settlement of planets may still seem as far-fetched as tourist travel into space or the mining of rare earths on asteroids, "but companies are already integrating the innovations of space travel into their business models now," says Peter Rosenstreich, Head of Market Strategy at Swissquote. He quotes as an example vehicle navigation based on GPS satellites.
According to the expert, it is typical for transformative technologies that they creep unnoticed into everyday life. Sooner or later, though, life without them is no longer conceivable. Rosenstreich recalls the Bessemer process developed in the 1850s for the first mass production of steel and the Advanced Research Projects Agency Network (ARPANET), the prototype of the internet, which was launched in the late 1960s. "We are convinced that the innovations developed in space will have far-reaching social and economic consequences here on Earth," the strategist explains. In his view, investors will not have to wait long before commercialisation and the associated potential for profits become a viable reality for companies. The new 5G mobile phone standard, for instance, is expected to deliver an explosive rise in data volumes. "The launch of broadband satellites will help to force costs down and increase penetration," Rosenstreich adds. He also sees lucrative business from satellites for observation of the Earth.
With that in mind, it is only logical that the "Themes Trading" series is being expanded with the Swissquote Space Economy Index. The actively managed benchmark comprises companies whose technical innovations facilitate the step beyond the Earth's atmosphere. The managers see the providers of satellite-based broadband internet as offering the greatest opportunities in the short term. The investment universe also includes businesses in the aviation and aerospace industry, defence, providers of technology hardware and telecommunications stocks. Portfolio managers are keeping an eye on specialists in reusable rockets as well. These allow smaller payloads to be transported more efficiently and at less cost, making satellite systems more appealing compared with ground-based solutions.
Leonteq is once again making it possible to invest in the new theme. Tracker certificates follow the Swissquote Space Economy Index with no term limit. There is a fee of 0.25% p.a. for the calculation agent and a management fee of 0.40% p.a. For this small contribution investors get a dynamic selection of (at present) 40 space shares in their portfolio. Airbus and Boeing, the two leading aviation and aerospace concerns in the world, are also on board. Virgin Galactic likewise made it through the initial selection process. The company from the empire of British billionaire Richard Branson recently presented the latest generation of its aerospace programme. While test flights for the "VSS Imagine" are set to commence in the summer, Virgin Atlantic would like to launch the first commercial flights into zero gravity using its existing tried-and-tested machines next year. A product of AeroVironment is already on Mars: the US technology company developed the "Ingenuity" helicopter in partnership with NASA. TA few days ago, the high-tech device lifted off the ground of the red planet for the first time. Satellite companies occupy a leading role in the Space Economy Index. Take Eutelsat as an example: the French company sent the first communication satellite into space as long ago as the late 1970s. Today Eutelsat is working with a fleet of 36 Earth satellites for TV and streaming businesses, telecommunications companies and governments.
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