BlackRock launches STAR ETF, offering global space economy access

BlackRock launches the iShares Space Technologies UCITS ETF (STAR), giving European investors targeted exposure to the expanding global space economy with an index methodology designed to evolve as the public-market opportunity set broadens.

STAR aims to capture the long-term growth opportunity created by the commercialisation of space by tracking the STOXX Global Space Satellites and Drones Index, including rocket, satellite and drone manufacturing companies and industry supply chains.

The STOXX index applies a two-tier methodology that uses FactSet RBICS revenue classifications to identify companies deriving at least 25% of revenues from space, drone or satellite-related activities, while also incorporating supply chain relationship data to capture companies with meaningful exposure across the broader space ecosystem.

Space is rapidly transitioning from a government-led domain into a broader industrial ecosystem, defined by a broader mix of agencies and well-capitalised public and private players. STAR captures companies across the space value chain, backed by government programmes, defence spending and growing private investment, identified through supply chain linkages, ensuring comprehensive exposure as space technologies become increasingly strategic.

BlackRock research highlights that newly listed companies are not usually added to equity indices immediately, creating timing difference between when a company begins trading and when it is incorporated into an index^[1]. In response, index methodologies are evolving to reflect the pace of innovation in public markets with faster inclusion approaches increasingly adopted across global indices. 

STAR’s index incorporates an IPO fast-entry mechanism, allowing qualifying newly listed companies to be added shortly after listing via intra-rebalance reviews, rather than waiting for the next scheduled rebalance. Eligible companies can typically be included within 10 to 30 days, supporting faster access to emerging innovators as they enter public markets.

“As launch costs fall and satellite adoption rises, the space economy is becoming an increasingly important long-term investment theme. STAR captures the full space value chain, spanning rockets, satellites and autonomous technologies, with each layer supporting the next. STAR’s fast-track access and thematic purity create a differentiated way to participate in this expanding opportunity set.”

Omar Moufti, thematics and sectors product strategist at BlackRock

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