For investors seeking momentum, ARK Space Exploration & Innovation ETF (ARKX) is probably on the radar. The fund just hit a 52-week high and soared 97.4% from its 52-week low of $15.07 per share.
Are more gains in store for this ETF? Let’s briefly examine the fund and its near-term outlook to gain a better understanding of where it might be headed:
ARKX in Focus
This is an actively managed Exchange-Traded Fund (ETF) that seeks long-term capital growth by primarily investing in domestic and foreign equity securities of companies engaged in the fund’s investment theme of space exploration and innovation. ARKX ETF charges 75 basis points (bps) in annual fees (see: all the Industries ETFs here).
What Led to the Surge?
Surging demand for satellite constellations, amid increasing need for reliable access to space to support telecommunications, Earth observation, and national security missions, combined with rapidly accelerating government and corporate investments in space exploration and innovations, can be expected to have driven the upside in space stocks and thereby ETFs like ARKX.
More Gains Ahead?
ARKX may remain strong, given its positive weighted alpha of 88.73 (per barchart.com). The ETF still offers some potential for investors seeking to benefit from its surge.
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ARK Space Exploration & Innovation ETF (ARKX): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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