{"id":568449,"date":"2026-08-14T03:56:09","date_gmt":"2026-08-14T03:56:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/568449\/"},"modified":"2026-08-14T03:56:09","modified_gmt":"2026-08-14T03:56:09","slug":"young-aussies-buy-into-space-hype-as-elon-musks-spacex-sheds-billions","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/568449\/","title":{"rendered":"Young Aussies buy into space hype as Elon Musk\u2019s SpaceX sheds billions"},"content":{"rendered":"

Elon Musk\u2019s SpaceX has wiped billions of dollars in market value since making its high-profile public debut. But that hasn\u2019t scared off some Aussie investors from still wanting to get in on the action.<\/p>\n

Gold Coast construction worker Kaleb Schofield invested around $5,000 in a space-themed ETF, which includes exposure to rocket and artificial intelligence giant SpaceX, the day the fund launched on the Australian Stock Exchange in May.<\/p>\n

\"'We<\/p>\n

\u201cIt\u2019s not just because space companies are cool. It\u2019s more the growth that there potentially still is in that sector. It\u2019s the infrastructure and launching rockets, but you\u2019ve also got communications and satellites as well,\u201d he told news.com.au. <\/p>\n

The space ETF makes up just a small percentage of Mr Schofield\u2019s overall portfolio, around 3.5 per cent, which is primarily invested in broad-based ETFs.<\/p>\n

At just 25, he already has four investment properties under his belt and a share portfolio worth $142,000. <\/p>\n

He began investing when he was 16 and is hoping to grow his wealth so he can be \u201cwork optional\u201d by the time he hits 40.<\/p>\n

ETF giants jump on SpaceX hype<\/p>\n

Betashares launched the first ASX-listed space ETF in early May ahead of the SpaceX IPO, with the fund attracting roughly $64 million in net inflows. It added SpaceX to the fund two sessions after the company\u2019s float, meaning it missed out on the initial surge.<\/p>\n

Fellow ETF provider GlobalX also launched a space ETF on the Aussie sharemarket in May, a day before the SpaceX IPO, attracting $6 million of inflows in its first week. It also missed out on the initial SpaceX spike.<\/p>\n

Meanwhile, CommSec, the lead retail broker in Australia, revealed more than 28,000 applied for shares in SpaceX, which was four times the volume received for the biggest IPO previously made through the platform.<\/p>\n

While Betashare\u2019s offering rose more than 25 per cent after its launching, it\u2019s since dropped nearly 50 per cent from its high.<\/p>\n

Like GlobalX\u2019s offering, SpaceX makes up roughly 25 per cent of the fund with Betashares investment strategist Hugh Lam noting this had weighed on the fund\u2019s performance.<\/p>\n

\u201cWe\u2019ve seen sort of a flurry of different earnings results, notably from SpaceX last week. We actually saw SpaceX shares fall about 7 per cent when they reported earnings,\u201d Mr Lam told news.com.au.<\/p>\n

\u201cThat was really due to them announcing higher capital expenditures. And we\u2019ve been saying that the space industry is fundamentally capital intensive. So it\u2019s not really a surprise for us that they\u2019re spending more.<\/p>\n

\u201cThey do have to launch new satellites into space and all that requires a lot of money. But the<\/p>\n

market reaction was naturally a bit negative.\u201d<\/p>\n

SpaceX shares initially jumped by up to 67 per cent above the $US135 IPO price in June hitting a peak of $US225.64, but plummeted more than 22 per cent below its debut price in August sliding to reach a low last week of $US104.83.<\/p>\n

On Wednesday, SpaceX shares climbed past $US140 for the first time in nearly a month, after SpaceX released Grok 4.6 and Mr Musk outlined plans for AI to become a bigger part of the company\u2019s business.<\/p>\n

SpaceX\u2019s market cap hit $US2.64 trillion at its peak shortly after its market debut, but this has now dropped to $US1.92 trillion.<\/p>\n

It has proved to be a divisive stock, with Morningstar putting a fair value estimated of $US62 on the stock, while others have ascribed a value of $US800.<\/p>\n

Research by Betashares found 39 per cent of Aussies were likely to consider investing in the space industry. This rose to 54 per cent for those under 40, compared to just 22 per cent for those aged 55 and over.<\/p>\n

Mr Lam said he expects continued demand for the space sector moving forward.<\/p>\n

\u201cThis is a new, exciting opportunity. But there are actually strong trends to believe that profitability or the pathway towards profitability is coming,\u201d he said.<\/p>\n

\u201cWe did see that with SpaceX\u2019s results where their operating margins or operating losses did compress and revenues were growing at a pretty fast rate. Starlink, their revenues were growing at a 66 per cent rate. So clearly, there\u2019s a bit of momentum there.\u201d<\/p>\n

Mr Schofield said he wasn\u2019t worried about the current downswing as he plans to hold the ETF for a minimum of five years and will potentially add more to his holdings.<\/p>\n

Mr Lam said investors should generally take a long-term approach to space investments and have thematic exposure form a \u201crelatively small portion\u201d of a diversified portfolio.<\/p>\n

Aussies piling into ETFs<\/p>\n

The Betashares and GlobalX space themed ETFs are among the 72 new ETFs that flooded the ASX last financial year, up from 50 listings in the previous year.<\/p>\n

According to Betashares, the Aussie ETF industry as a whole received a record breaking $6.8 billion in net inflows in July and now has nearly $371 billion in total assets.<\/p>\n

Income was a key theme for investors in July, with net inflows to fixed income and equity income ETFs reaching a record $1.63 billion. <\/p>\n

Mr Lam said popularity of ETFs came down to a few factors: diversification, lower costs and them generally being more tax effective compared to traditional alternatives like managed funds.<\/p>\n

\u201cWe\u2019ve seen continued inflows throughout late May when the tax reforms were announced,\u201d he said.<\/p>\n

Mr Schofield said ETFs appealed to him because it gave him exposure to \u201cmore than just one idea or one company that\u2019s going to win\u201d.<\/p>\n

\u201cFor all of the other niches and things that are up and coming, it\u2019s just so much simpler to go and get into ETFs to get back into the widespread trend and also it\u2019s a little bit less risky,\u201d he said.<\/p>\n

He is hoping to build up a $1.5 million share portfolio generating $40,000 to $50,000 in income to allow him to become \u201cwork optional\u201d, or essentially be able to retire, by the time he is 40.<\/p>\n

Read related topics:Elon Musk<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Elon Musk\u2019s SpaceX has wiped billions of dollars in market value since making its high-profile public debut. 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