China’s growing arsenal of space weapons now includes missiles, cyberweapons, satellite jamming devices and high-powered lasers designed to blind satellites from the ground as they pass overhead, cautions Sean Brodrick, editor of WealthWave.
“Kidnapper” satellites are capable of rendezvous and proximity operations (RPOs) that can literally pluck satellites out of orbit … or disable them by bending or disconnecting their solar panels and antennas.
Russia’s also deploying “kamikaze” satellites capable of ramming and destroying U.S. space assets. And its new “nesting doll” weapon — named after the famous Russian doll that opens up one inside the other — is another threat.
Both Russia and China also have directed-energy weapons, which can damage or disable satellites from a distance.
A good way to get some exposure to some of the inevitable, massive defense spending I see coming is with the so-called space exchange-traded funds (ETFs) like these:
Ark Space Exploration & Innovation ETF (ARKX)
Expense ratio: 0.75%
This fund — managed by world renowned investor Cathie Wood — invests in domestic and foreign companies engaged in space exploration and innovation such as satellite and launch vehicles, 3D printing, artificial intelligence (AI) and robotics.
Plus, companies that benefit from aerospace activities, including agriculture, global positioning systems and drone manufacturers. Top holdings include Trimble (TRMB), Ark 3D Printing ETF (PRNT), Iridium (IRDM), Kratos Defense & Security (KTOS) and L3 Harris Technologies (LHX).
Procure Space ETF (UFO)
Expense ratio: 0.75%
This fund tracks the S-Network Space Index, an equity benchmark for a globally traded portfolio of companies engaged in space-related businesses like satellite technology. Top holdings include Garmin (GRMN), Globalstar (GSAT), Trimble, Iridium and DISH Network (DISH).
iShares U.S. Aerospace & Defense ETF (ITA)
Expense ratio: 0.42%
The fund tracks the Dow Jones U.S. Select Aerospace & Defense Index. Top holdings include Raytheon (RTX), Boeing (BA), Lockheed Martin (LMT), Teledyne (TDY) and L3 Harris Technologies.
The catch-22 of so-called “peaceful reunification” on the one hand — and catastrophic Chinese miscalculation on the other — looks entirely preventable! But until we get there, look into these ETFs for growth opportunities.
