Space & Aerospace

Sector thesis

Space & Aerospace covers companies that build, launch, and operate spacecraft, satellites, and the rockets that carry them—plus the ground infrastructure and services that make it all work. Think of it as the industry that gets stuff into orbit and keeps it there. What's driving interest now is a fundamental shift: space is becoming routine infrastructure, not a government-only novelty. Satellites are now essential for global internet coverage, weather forecasting, and military communications. Launch costs have dropped dramatically over the past decade, making it economical to send thousands of small satellites into orbit. That's the megatrend—space is moving from exploration to utility. Within the sector, there are three main buckets. First: launch services—companies that build rockets and sell rides to space. Second: satellite operators and manufacturers—firms that build the actual spacecraft and sell data or connectivity services. Third: ground support and infrastructure—the antennas, software, and logistics that keep satellites working once they're up there. The biggest risks are real. Launch is still expensive and occasionally fails. Satellite constellations take years and billions to build, so a single company can burn cash for a long time before turning profitable. Regulation is still evolving—governments are still figuring out rules for space traffic, debris, and who owns what up there. And competition is intense; new entrants keep emerging. For a retail portfolio, this sector works best as a small, higher-risk allocation. You're betting on long-term structural growth, not quarterly earnings. Watch for: launch success rates (failures are public and matter), customer contracts (especially long-term government or enterprise deals), and cash burn rates. Diversification across launch, satellite operators, and infrastructure providers helps spread risk. This isn't a get-rich-quick play—it's a 5-10 year conviction bet.