FSITC Launches Asia’s First Aerospace and Satellite ETF, Tracking Solactive Index
In the middle of the 20th century, the “race to space” was also a race between nations, and no investor was able to engage commercially in this highly sensitive political affair. Nowadays, the sectors of space technology and satellites offer numerous ways for investors to allocate their capital in this industry. Morgan Stanley estimates that the $350-billion global space sector could surge to over $1 trillion by 2040[1]. Envisaging this potential, Solactive is pleased to announce its first engagement with major Taiwanese issuer First Securities Investment Trust Corporation, in the aerospace and satellite sectors. FSITC launched now the FSITC Aerospace and Satellite ETF (stock code: 00910), tracking the Solactive Aerospace and Satellite Index. Listed on the Taiwan Stock Exchange (TWSE), it is the first ETF in the aerospace and satellite realm in Asia and the first one to include the Taiwan supply chain.
The Solactive Aerospace and Satellite Index is a representation of securities of companies that have business operations in technologies, materials, and services within the aerospace and satellite industry. To be eligible for index inclusion, shares need to be primarily listed in one of the countries that are part of the developed markets as defined by the Solactive Country Classification Framework[2]., including South Korea and Taiwan.
The companies are selected by Solactive’s proprietary Natural Language Processing Engine ARTIS®. ARTIS® utilizes advanced algorithms to parse large volumes of public documents evaluating companies’ relevance to several themes or topics. The procedure ranks potential index constituents according to proprietary criteria, considering not only a company’s exposure to a theme but also the company’s importance to it.
Timo Pfeiffer, Chief Markets Officer at Solactive, says: “Space exploration triggers scientific innovation and technological advances, driving our society and economy forward. Also, as we are only at the beginning of the human era of leaving our home planet and exploring space, there is great potential in this industry. We are delighted and honored to establish this partnership with FSITC on such an important theme and look forward to more products in the near future.”
[1] https://www.morganstanley.com/Themes/global-space-economy
[2] Solactive | Solactive Country Classification