The Tema Space Innovators ETF (NASA) experienced a volatile week, closing Friday at $34.51 after a 3.9% decline for the day. However, the fund still managed to post a solid 7.5% gain for the week, driven by growing anticipation surrounding a potential initial public offering (IPO) from SpaceX.
As of May 15, the fund held $707.3 million in assets. Its top positions include Rocket Lab USA (RKLB) at 11.0% and a special purpose vehicle (SPV) providing exposure to SpaceX at 7.3%. The ETF is designed to give investors access to both public and private space companies.
SpaceX IPO in Focus
Reports from Reuters indicate that SpaceX, founded by Elon Musk, is targeting a Nasdaq listing as soon as June 12. The company is reportedly aiming to raise approximately $75 billion at a staggering $1.75 trillion valuation, which would make it the largest IPO on record. A prospectus could be released as early as next week, with an investor roadshow scheduled for June 4 and share pricing potentially on June 11.
In a related development, SpaceX shareholders have approved a 5-for-1 stock split, effective the week of May 18. According to Bloomberg News, this move reduces the fair-market value of SpaceX shares from $526.59 to $105.32, making them more accessible to a broader range of investors.
Market Context and ETF Performance
The broader market faced headwinds on Friday, with the Nasdaq Composite sliding 1.54%, the S&P 500 falling 1.24%, and the Dow Jones Industrial Average losing 1.07%. Concerns over persistent inflation and rising bond yields weighed on equities, as noted by Reuters. Kenny Polcari of Slatestone Wealth commented that the market had "gotten way ahead of itself" and that "inflation remains sticky."
Space stocks were not immune to the selloff. Among NASA's public holdings, Rocket Lab fell 5.9%, Planet Labs dropped 3.3%, and Intuitive Machines declined 7.2%. Only AST SpaceMobile managed a gain of 0.8%. The Procure Space ETF also fell about 3% on the day.
Unique Positioning of NASA ETF
The Tema fund distinguishes itself from competitors by offering direct pre-IPO exposure to SpaceX through its SPV structure. According to Barron's, citing Morningstar data, NASA is the only space ETF with such access. In contrast, funds like the Procure Space ETF, State Street's ROKT, and Roundhill's MARS lack private stakes in SpaceX, even as they benefit from the IPO buzz.
Yuri Khodjamirian, Tema's chief investment officer, emphasized the fund's unique approach at its launch: "SpaceX stands apart as the defining company of the space economy." He added that NASA aims to provide investors with "a transparent, actively managed vehicle" to access SpaceX and the broader space ecosystem.
Outlook and Risks
While the SpaceX IPO is generating excitement, analysts caution that risks remain. A lower-than-expected valuation, IPO delays, or weak prospectus details could weigh on the ETF. Jay Ritter, an IPO tracker at the University of Florida, told Reuters that "lots of things have to go right" at the current valuation, noting that "most of the time, things don't go according to plan."
Technically, NASA is set for a choppy start to the week. If Friday's low of $34.08 holds, the weekly uptrend remains intact. A break above $35.13 could target the $36.08 level from Thursday. However, a drop below $34.08 may lead to a test of the $33.52-$33.95 support zone. The next few days will likely be driven by developments in the SpaceX filing process, as investors weigh the potential impact on the space sector.
