BlackRock, the world’s largest asset manager, has launched a new exchange-traded fund focused on the space economy, the iShares Space Technologies UCITS ETF, trading under the ticker STAR. The fund gives UK and European investors access to publicly listed companies across the entire space value chain, including rocket manufacturers, satellite operators, drone producers, and their supply chains.
Tracking the STOXX Global Space Satellites and Drones Index, STAR screens companies using FactSet RBICS revenue data. To qualify, a company must generate at least 25% of its revenue from space, satellite, or drone-related activities. The index employs a two-tier screening process and currently counts among its holdings Rocket Lab, AST SpaceMobile, Planet Labs, Viasat, Intuitive Machines, Redwire, Globalstar, EchoStar, Iridium Communications, and Firefly Aerospace.
A standout feature is an IPO fast-entry mechanism. Newly listed companies that meet the index criteria can be added within 10 to 30 days of their market debut, bypassing typical scheduled rebalances. BlackRock’s thematics and products strategist Omar Moufti cited declining launch costs and rising satellite adoption, noting that this makes the space economy a compelling long-term investment theme. The feature is drawing particular attention amid speculation around a potential SpaceX IPO, which could benefit from faster inclusion.
The ETF carries a total expense ratio of 0.50% and is available across the UK and 12 European markets, including Germany, France, Ireland, Italy, Spain, and Sweden. According to Bloomberg Intelligence, space-themed ETFs have attracted roughly $8 billion in inflows this year, surpassing defense ETFs and marking them as one of the most popular thematic categories. While STAR is a pure-play space fund, BlackRock also offers broader aerospace exposure through its iShares US Aerospace & Defense ETF and iShares Defense Industrials Active ETF.
