Michael Kovacs, President and CEO of Harvest, said WP He sees excellent long-term growth potential and that the product is a good addition to his specialty index category. After launching Canada’s first blockchain fund three years ago, this is another coup for the Oakville, Ontario-based fund provider.
Kovacs pointed out that while some people instinctively view a space fund or ETF as a fad, it is actually an industry that has been around since the 1950s when the US and Russia competed for headlines. However, over the past 20 years, there have been more and more private companies, the most famous of which is SpaceX, that are stepping into the arena and cutting costs.
Kovacs said, “There are organizations that are working with the US government that are winning hundreds of millions of dollars in contracts to supply satellites for the US space defense budget, which is more than $ 15 billion.
“When you think of the US Navy, it is the largest operating fleet in the world and it depends on satellite communications and current new communications for navigation. This is a big part of what is currently about a $ 2 billion to $ 2.5 billion industry that will grow to over $ 10 billion in the next five years. “
Kovacs also highlighted the satellites needed for broadband communications, opening up areas of the world that currently do not have access to the internet. Add SpaceX and supply astronauts to the International Space Station, which uses rockets developed by private companies to launch a new space station into orbit the moon. The possibilities are seismic.