Global X launches leveraged SpaceX ETF on Toronto exchange

(SpaceEnergy) Canadian asset manager Global X has launched a leveraged exchange-traded fund (ETF) providing exposure to SpaceX shares, with trading beginning on the Toronto Stock Exchange on 14 October.

The Global X SpaceX PowerStock ETF, trading under ticker SPCP, targets approximately 1.33 times the exposure of an equivalent investment in Space Exploration Technologies Corporation.

Global X announced the launch on 14 October as part of a six-fund PowerStock range covering individual US companies.

The ETF seeks long-term capital appreciation through direct or indirect leveraged exposure to SpaceX Class A common shares.

Its investment strategy targets approximately C$133 of equity exposure for every C$100 invested, using borrowing within the fund rather than requiring investors to maintain individual margin accounts.

Unlike some leveraged ETFs, the product does not reset its leverage daily.

The fund trades in Canadian dollars and seeks to hedge substantially all foreign-currency exposure against the Canadian dollar.

Its annual management fee is 0.15%, excluding applicable taxes, borrowing costs and other expenses.

Global X reported net assets of C$1.83 million as at 14 October, with 100,001 units outstanding.

The fund's inception date was 13 October.

The investment vehicle differs from diversified space-industry ETFs because it concentrates exposure on SpaceX rather than holding shares across multiple launch, satellite and spacecraft technology companies.

Global X warned that leverage magnifies both investment gains and losses, while concentration in a single company increases exposure to company-specific risks.

The launch provides Canadian investors with a new listed vehicle for obtaining leveraged exposure to SpaceX's commercial space activities.