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This Tech Stock Just Entered The Space Race

This Tech Stock Just Entered The Space Race

Posted On September 27, 2022 11:42 pm
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Over the past few years, many big technology companies have entered the space race, whether it was Amazon’s (AMZN) Jeff Bezos with Blue Horizon, Tesla’s (TSLA) Elon Musk with Space X, or Alphabet’s (GOOG) satellite internet service, which will be competing with Space X Starlink internet service.

Now the newest technology company to enter space is Apple (AAPL), but in a slightly different way than the others.

On September 7th, Apple released its newest iPhone, the iPhone 14. One of the key features of this new device is the Emergency SOS via satellite feature. This feature allows iPhone 14 owners to contact emergency services via satellites in an emergency when the individual does not have traditional cellular telephone service.

This feature could be a game changer during natural disasters and cell towers are knocked out. Those in need of help will be able to contact first responders with their location, health status, and other pertinent information to help save lives.

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Apple is subcontracting the satellite service with a company called Globalstar (GSAT) which already has a network of satellites in outer space for which Apple iPhone 14 and newer phones will be able to access.

The Emergency SOS satellite service will be free for the first two years of owning the iPhone 14; after that time, there will be a price associated with the service, but those details are unknown now.

With more and more of the major technology companies entering space in some form or fashion, it is not hard to see that aerospace technology and the companies currently operating in that industry will benefit from the shift.

That is why I believe you should consider investing a small portion of your portfolio in the aerospace industry. And one of the best ways to gain broad access to any sector is using exchange-traded funds. So, let us look at a few ETFs you can own today, which will give you access to the aerospace industry.

First is the largest and most well-known of the three I will highlight today, the ARK Space Exploration & Innovation ETF (ARKX). ARKX is one of Cathie Woods funds. ARKX focuses on global companies engaged in space exploration and innovation.

As described by the fund advisor, space exploration is leading, enabling, or benefiting from technologically enabled products and /or services that occur beyond the surface of Earth and the introduction of a technologically enabled product or service that the advisor expects to change an industry landscape.

The fund’s scope seems broad, but ARKX only has 36 holdings with a weighted average market cap of $82 billion. The fund currently has $293 million in assets and charges an expense ratio of 0.75%. ARKX had an inception date of March 30th, 2021.

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