Hello everyone,
today I started to build up a position in the space sector (specifically via the VanEck Space Innovators ETF / $JEDI (+8,7%) ). I realize that this is often labeled as a "niche gamble" here on the forum, but I wanted to share my deeper thoughts on why I see this (if I stick with it) as a 40-year investment.
"Space will be important in the future" is also too thin an argument for me. Here are the three pillars of why I think this is a fundamental industrial revolution:
1. The drastic reduction in launch costs:
This is the industry's "Nvidia moment". Thanks to the reusability of rockets (SpaceX Falcon 9, soon Starship), the cost per kilo of payload in orbit has plummeted. What used to cost billions is now affordable for commercial companies. This opens up the market for business models that were previously physically and financially impossible.
2. Infrastructure vs. exploration:
In $JEDI, I am not investing in vague dreams of Mars, but in real infrastructure. It is about Low Earth Orbit (LEO) satellite constellations. We are talking about global high-speed internet (Starlink/Kuiper), precise earth observation for agriculture and climate research as well as navigation. This is not a "maybe", this is the extension of our Earth's digital infrastructure into orbit.
3. Asymmetrical risk/reward ratio:
I am running a core satellite strategy (approx. 85% world ETF / 15% growth). The 5-7% in the space sector serves as a turbo or experiment. Should the sector fail, my portfolio will be cushioned by the All-World. However, should the "space economy" grow to USD 1.8 trillion by 2035 according to forecasts, this small lever will deliver a massive excess return compared to the broad market.
Why the ETF ($JEDI) and not individual stocks?
The sector is extremely volatile and many companies will go bust while others will become giants. I don't want to try to pick the next "Space-Nvidia" myself, but rather stay automatically invested in the market leaders via the semi-annual rebalancing of the index (and potentially also take a SpaceX IPO in a timely manner).
Of course, the entry point is extremely unfavorable and perhaps the "hype" has run its course for the next few years. But I am looking forward to watching such a position develop
