This Great, Long-Term Investment is Trading at a Discount

There’s even more money to be made from a conversation you and I had back on [April 5].

At the time, I told you the saga of Cathie Wood. She’s a brilliant fund manager running some of the best tech ETFs available in the market today.

But as I noted on that day, she has received a barrage of negative publicity because her funds are heavily out of favor.

After all, one of her ETFs, the ARK Next Generation Internet ETF has fallen 31% since it sold off starting on February 16. The thing is, that’s not the fund I want to talk to you about today.

But, for us savvy tech investors, this pullback is very good news indeed.

Here at Strategic Tech Investor, we know that having the courage to go against the grain means you can really smoke Wall Street.

Here’s the thing; Wood recently launched an ETF focused on the new industry of space exploration that will be worth $20 billion by 2030.

With Wood’s amazing track record as our guide, let me show you why this new ETF could gain more than 335% from here…

The Kitchen Sink of Space

Now then, Wood’s new fund actually launched the day of our [April 5] chat.

The next day none other than MarketWatch noted that in its first day of trading, Wood’s new fund, “fails to blast off.”

I have to say I’m thrilled by all the negative headlines. See, I’ve been following Wood for several years and I think she runs some of the best tech funds around.

The reason I look for big discounts on her funds is that it just adds to our long-term profits.

You don’t have to take my word for it. Even after the recent tech sell-off, ARKW still boasts a five-year gain of 484.5%.

Now you know why I’m so excited to introduce you to the ARK Space Exploration & Innovation ETF (ARKX).

This ETF holds around 40 stocks at this point. The one thing Wood’s funds are known for – and this ETF is no exception – is active management.

She doesn’t just look to outperform a benchmark average by locking in a carbon copy of the index. She and her team are involved in monitoring the best stocks in the fund day in and day out.

In its top 10 holdings, it has big names like Lockheed Martin Corp. (LMT), and Boeing Co. (BA). There are also a number of other companies that support the ETF’s innovation piece of its mandate, like (AMZN) and Alphabet Inc. (GOOG).

One of the things I really like about this ETF, aside from Wood’s strong track record, is that it’s one of the best ways to buy into the new space race but letting experts diversify and choose a good risk-reward balance.

For example, one of the ETF’s holdings is a small – $1.6 billion market cap – South Dakota textile company that has been around since 1956, when it started making lighter-than-air materials for the first space race, Raven Industries Inc. (RAVN).

Its specialized textiles are also used for ground coverings and liners for the energy industry as well as utilities. With increased environmental scrutiny and an emergent space program, Raven is well-positioned to take advantage of both. Its textiles would be very valuable on the moon or Mars when establishing habitats.

Automated Insights

AeroVironment Inc. (AVAV) also fits into this mold, with its $2 billion market cap. It has been a long-time player in the drone sector, especially for the defense and intelligence communities.

But it’s now moving into space in a big way with AI-driven drones and vehicles. It’s the force behind a drone helicopter NASA recently piloted remotely on Mars.

Meanwhile, one of the biggest trends today is companies that are implementing “cobots” into their workforce. These robots don’t replace humans, they work side by side with them, helping boost productivity.

This is especially important as baby boomers start to leave the workforce in droves and there aren’t enough new workers to replace them. Teradyne Inc. (TER) is all about industrial automation.

And this kind of automation is going to be particularly useful in colonies beyond Earth, where machines could be deployed to help prepare sites for human habitation before the people arrive.

Another big defense and industrial communications player that is already a major player in the space race and has been featured here previously is L3Harris Technology Inc. (LHX).

It has been a key provider of secure comms for the intelligence, aerospace, and armed forces communities for decades. The space hook: much of the communications equipment for NASA’s current Mars mission relies on L3Harris radiation-hardened materials.

A Long Term Prospect

Let me be clear. I rarely recommend stocks or ETFs that have been trading for less than six months, which can be a volatile period. However, I believe the potential rewards here greatly outweigh the new-issue risk.

But the two most compelling facets of Wood’s space ETF is that it’s one of the best ways to play the early stages of the new space race in a way that greatly reduces the risks inherent in early sage pure plays.

And you also get a collection of some of the best names in disruptive technologies in the world.

Just remember, this isn’t a trading vehicle; it’s a long-term investment.

Its combination of blue-chip tech and aerospace companies and the new generation in space tech make this a great long-term choice, especially at current prices.

Cheers and good investing,

— Michael A. Robinson

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Source: Strategic Tech Investor