Rocket Lab 20% Weight in STAR ETF Fuels Demand as ETFs Gain $8B
RKLB•Rocket Lab constitutes roughly 20% of BlackRock’s iShares STAR space technologies ETF, which tracks the STOXX Global Space Satellites and Drones Index with a 0.5% expense ratio. RKLB shares slipped 1% in overnight trading as space-themed ETFs amassed $8 billion in net inflows and leveraged SpaceX funds launch.
1. ETF Inclusion and Weighting
Rocket Lab makes up roughly 20% of the new iShares STAR space technologies ETF that tracks the STOXX Global Space Satellites and Drones Index and carries a 0.5% expense ratio. The fund’s fast-entry mechanism could add newly listed companies like SpaceX between scheduled rebalances.
2. ETF Inflows and New Leveraged SpaceX ETFs
Space-themed ETFs have attracted $8 billion in net inflows this year, spurring a second wave of leveraged SpaceX ETFs such as SPCF, LOFF, SPCH, SPCU and SPAL that seek amplified exposure to SpaceX shares.
3. Trading Impact on RKLB Shares
In overnight trading, Rocket Lab shares slipped 1% while AST SpaceMobile and Intuitive Machines each gained 1% and Redwire fell 2%, reflecting shifting investor flows into space-related ETFs.
4. Risks and Recommendations
High expense ratios of 0.75–1.00% and 180-day lockup periods on SpaceX holdings pose risks for ETF investors, leading some analysts to recommend direct stakes in companies like Rocket Lab instead of indirect ETF exposure.
