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Two Additions in S-Network Space Index Semi-Annual Reconstitution

  • June 13, 2019
  • S-Network Global Indexes

New York, NY, Thursday, June 13, 2019 — The S-Network Space IndexSM (TICKER: SPACE) will add two constituents in its semi-annual reconstitution, effective 6:00 PM (ET) Sunday, June 23, 2019, changing the number of index components to 32.

The additions to SPACE are: GLOBAL EAGLE ENTM. (TICKER: ENT US), COMCAST A (TICKER: CMCSA US).

A complete list of constituents and weights will be posted on the S-Network Space Index website (space.snetglobalindexes.com) as of the effective date.

 

The S-Network Space Index is designed to serve as a fair, impartial and transparent measure of the performance of companies materially engaged in the space industry.

 

Detailed information on the S-Network Space Index including constituent data, rules and price information is available at space.snetglobalindexes.com. Data is also available through most vendors of financial data.

 

Index: S-Network Space Index: TICKER: SPACE

 

Index S-Network Space Total Return Index: TICKER: SPACET

SPACE Takes Off

  • May 09, 2019

The S-Network Space Index (TICKER: SPACE) Provides the Most Accurate Measure of the Performance of Global Space Equities

By Space Investment Services LLC and S-Network Global Indexes, Inc.

The global space economy is presently valued at over $383.5 billion per year, according to the nonprofit Space Foundation. Approximately 80% of this total is driven by commercial activity, ranging from commercial launches to the delivery of media and data via satellite. NASA accounts for a mere 5%.[1]

According to a number of prominent financial institutions, this is just the beginning of what promises to be one of the most dynamic growth sectors of the global economy. Both UBS Wealth Management[2] and Morgan Stanley[3] are forecasting that the space economy will roughly triple in size over the next twenty years. And these forecasts are at the conservative end of the spectrum.

Both Merrill Lynch[4] and Goldman Sachs[5] predict that space will become a multi-trillion-dollar sector over the same time frame.

Clearly space is big business and getting bigger every day.

Figure 1: Current and Forecasted Size of the Space Economy

The S-Network Space Index

These forecasts were one of the reasons why S-Network, in concert with Space Investment Services LLC, developed the S-Network Space Index (TICKER: SPACE), which seeks to measure the opportunity embedded in one of the world's fastest growing sectors. The index serves as the underlying index for the Procure Space ETF (TICKER: UFO), which recently listed on the NYSE.

Interestingly, UFO is the only Exchange-Traded Fund permitted to use the word “space” in its name. This is because SPACE is the only pure-play space economy index available today. It has been named the first Certified Space Data Product by the nonprofit Space Foundation, which uses the index in its quarterly reports as a benchmark for measuring the financial performance of the space industry.

Over 80% of the index constituents by weight derive over 50% of their revenues from space. The remaining 20% of the index constituents by weight derive at least 20% of their revenues and/or more than $500 million per year from the industry. On a weighted basis, the index derives over 80% of its revenues from space-related activities.

Figure 2: SPACE Index Sectors by Weight

Defining the Space Economy

The space economy is made up of four primary sectors, of which “commercial space products and services” accounts for the largest share at 55%, including subsectors such as satellite transmission of media and data content, satellite communication services, satellite-based navigation software and services, and satellite imagery of Earth. The second-largest sector includes commercial infrastructure and support industries, such as satellite manufacturing and launch for non-government customers, and manufacturing ground equipment and consumer devices. Together, these two sectors garner over $300 billion in annual revenues.1

Somewhat surprisingly, the combined space budgets of all governments worldwide in 2017 amounted to just over $76 billion.1 Clearly, space is already being driven by the private sector, which is expected to account for the lion's share of growth in the years ahead.

Presently, the commercial activities driving the global space economy concentrate in three key business segments: a) commercial launches and satellite manufacturing, b) delivery of media and data via satellite and c) the manufacture of GPS chips that enable smartphones and other devices to use location-based services.

All of these segments are represented in SPACE, and the forecasted growth described earlier in this piece will rely principally on the continued growth of these well-developed space businesses.

But there is also more to come from companies not traditionally involved in the space industry. For example, Amazon recently announced a multi-billion-dollar initiative to establish a satellite network aimed at bringing broadband connectivity to even the most remote corners of the planet.[6] The Amazon initiative is well within the framework of current space technology and, like many other space initiatives, can no longer be considered "pie-in-the-sky."

Figure 3: Global Space Activity, 2017

Defining the Space Growth Trajectory

While growth forecasts are almost entirely based on the present realities of the space economy, the future could well hold some significant game-changers that could accelerate the pace of growth beyond what is clearly forecastable today.

For example, space tourism, including transportation and hospitality, is about to get underway as entities like Richard Branson's Virgin Galactic complete flight testing and begin furnishing their vehicles in preparation for paying customers.

In the longer term, space resource exploration and extraction could provide abundant new sources of key minerals, including rare earth metals that are so essential to the manufacture of smartphones and related technologies.

Space-based defense initiatives — such as the US DoD proposal of a Space Force[7] — are expected to rely heavily on the private sector for launch vehicles and related technologies, adding yet another massive new dimension to the growth equation for space. More broadly, there are multinational efforts to better track and manage space traffic.[8]

Many companies engaged in these new space initiatives remain privately held. But one of the defining characteristics of SPACE is its quick uptake of the IPOs expected to dominate in these new segments of the space economy.

[1] Space Foundation, The Space Report 2018, (July 19, 2018) https://www.thespacereport.org/

[2] UBS, Longer Term Investments: Space, (November 30, 2018)

[3] Morgan Stanley, “Space: Investing in the Final Frontier,” (November 7, 2018)

[4] Bank of America Merrill Lynch, To Infinity and Beyond – Global Space Primer, (October 30, 2017)

[5] Goldman Sachs, Profiles in Innovation: Space – The Next Investment Frontier, (April 4, 2017)

[6] CNBC, “Here’s why Amazon is trying to reach every inch of the world with satellites providing internet,” (April 7, 2019) https://www.cnbc.com/2019/04/05/jeff-bezos-amazon-internet-satellites-4-billion-new-customers.html

[7] U.S. Department of Defense, “DOD Submits U.S. Space Force Proposal,” (March 1, 2019) https://www.defense.gov/explore/story/Article/1767808/dod-submits-us-space-force-proposal/

[8] European Space Agency, “About SSA,” (March 14, 2018) https://www.esa.int/Our_Activities/Operations/Space_Situational_Awareness/About_SSA

 

Four Additions and One Deletion in S-Network Space Index Semi-Annual Reconstitution

  • December 21, 2018
  • S-Network Global Indexes

New York, NY, Friday, December 21, 2018 — The S-Network Space IndexSM (TICKER: SPACE) will add four constituents and drop one constituent in its semi-annual reconstitution, effective 6:00 PM (EST) Sunday, December 23, 2018, changing the number of index components to 30.

The additions to SPACE are: Raytheon (TICKER: RTN US), Harris (TICKER: HRS US), Honeywell (TICKER: HON US), L3 (TICKER: LLL US).

The deletion from SPACE is: Global Eagle Entertainment (TICKER: ENT US).

A complete list of constituents and weights will be posted on the S-Network Space Index website (space.snetglobalindexes.com) as of the effective date.

 

The S-Network Space Index is designed to serve as a fair, impartial and transparent measure of the performance of companies materially engaged in the space industry.

 

Detailed information on the S-Network Space Index including constituent data, rules and price information is available at space.snetglobalindexes.com. Data is also available through most vendors of financial data.

 

Index: S-Network Space Index: TICKER: SPACE

 

Index S-Network Space Total Return Index: TICKER: SPACET

Two Deletions in S-Network Space Index Semi-Annual Reconstitution

  • June 08, 2018
  • S-Network Global Indexes

New York, NY, Friday, June 8, 2018 — The S-Network Space Index (TICKER: SPACE) will drop two constituents in its semi-annual reconstitution effective 6:00 PM (EST) Sunday, June 17, 2018, changing the number of index components to 28.

 

The deletions from SPACE are Thaicom Pcl (TICKER: THCOM TB) and Gs Sweden Ab (TICKER: GOMX SS).

 

A complete list of constituents and weights will be posted on the S-Network Space Index website (space.snetglobalindexes.com) as of the effective date.

 

The S-Network Space Index is designed to serve as a fair, impartial and transparent measure of the performance of companies materially engaged in the space industry.

 

Detailed information on the S-Network Space Index including constituent data, rules and price information is available at space.snetglobalindexes.com. Data is also available through most vendors of financial data.

 

Index: S-Network Space Index: TICKER: SPACE

 

Index S-Network Space Total Return Index: TICKER: SPACET

May 09, 2019
SPACE Takes Off

June 13, 2019
Two Additions in S-Network Space Index Semi-Annual Reconstitution

December 21, 2018
Four Additions and One Deletion in S-Network Space Index Semi-Annual Reconstitution

June 08, 2018
Two Deletions in S-Network Space Index Semi-Annual Reconstitution