Cathie Wood’s newly debuted space-focused ETF, ARKX, seeks to tap gains from the growing space industry. However, the ETF does not include solely traditional space stocks, it also holds technology companies that can add value to aerospace operations or benefit from aerospace operations. Both Trimble (TRMB) and Iridium (IRDM) are examples of such and are among ARKX’s top 10 holdings. But which of these stocks is a better choice now? Read more to find out.Trimble Inc. (TRMB) in Sunnyvale, Calif., provides technology solutions that enable professionals and field mobile workers to enhance or transform their work processes worldwide. It operates through four segments: Buildings and Infrastructure; Geospatial; Resources and Utilities; and Transportation. In comparison, Iridium Communications Inc. (NASDAQ:IRDM) in McLean, Va., provides mobile voice and data communications services to businesses, U.S. and foreign governments, non-governmental organizations, and consumers worldwide using a constellation of orbiting satellites..
Disruptive innovation-focused ARK Investment Management LLC (or ARK Invest) is an investment advisor that gained importance after it generated colossal stock market gains in 2020. Cathie Wood’s newly added ARK Space Exploration & Innovation ETF (ARKX) began trading on March 30. “Space is already an invisible backbone to our economy, and we think that’s only going to become more so as [satellite] constellations launch,” said Ark Invest analyst Sam Korus.
The ETF does not include solely traditional space stocks, it also targets technology companies that operate in artificial intelligence, robotics, 3D printing, materials, and energy storage. Both TRMB and IRDM are among ARKX’s top 10 holdings. With a 9.4% portfolio weighting, TRMB is ARXX’s top holding, while IRDM holds the seventh position, with a 5.2% portfolio weighting as of October 21. IRDM has gained 16.1% over the past six months, while TRMB has gained 8.9%. In terms of their past year’s performance, TRMB is the winner with 66.6% gains versus IRDM’s 46.8%. Also, TRMB’s 29.6% gains year-to-date compares with IRDM’s 6.1% returns.