<figure id="attachment_475877" aria-describedby="caption-attachment-475877" style="width: 4733px" class="wp-caption alignnone"><a href="#" data-ident_hash="e557b4f4"><img src="https://res.cloudinary.com/fridaydigital/image/private/t_article_image/wpmedia/2026/07/e2af20cfc7222ccf05660626b9fa84c7.jpg" alt=""></a><figcaption id="caption-attachment-475877" class="wp-caption-text">Is “Space” the Right Choice for the New NISA? What Are the Odds for This Ultimate Growth Market Approved by the Financial Services Agency? … The photo shows SpaceX’s “Starship” on its 13th test flight</figcaption></figure>
<h3> Unprecedented! Space Funds Now Eligible for NISA Allocations</h3>
 “SpaceX,” known for its Starlink satellite network and led by American entrepreneur Elon Musk, made its debut on the U.S. Nasdaq market on June 12. Its market capitalization reached approximately 320 trillion yen—nearly three times Japan’s national budget (about 122 trillion yen).The stock market was swept up in unprecedented frenzy.
 While space development has traditionally been pursued as a national endeavor, it is now transforming into a massive business driven by private companies. Space-related news is reported almost daily, and on the stock market, space development-related stocks are attracting investors’ attention as the next generation of growth stocks.
 Amid this momentum, the first space-related stock index fund has been added to the “regular savings investment枠” of the New NISA. It is the “SMT MIRAIndex Space,” managed by Sumitomo Mitsui Trust Asset Management.
 When it comes to the New NISA’s “regular savings investment category,” eligible products are limited exclusively to mutual funds and ETFs that meet the Financial Services Agency’s strict criteria.The significance of the Financial Services Agency granting its “official endorsement” to products deemed suitable for long-term regular investment is substantial; for this reason, highly volatile thematic funds specializing in specific industries or trends have, in principle, been excluded. Yet suddenly, a high-risk thematic (space) fund has appeared in this category.
 The “SMT MIRAIndex Space” fund became eligible for the NISA regular savings investment category on June 18—six days after “Space X” made its debut on the U.S. Nasdaq market.
 Why “space” in NISA at this particular time?
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“I think the Space X IPO was a major factor. I suspect Sumitomo Mitsui Trust Asset Management saw this as an opportunity and pushed for it with the Financial Services Agency, ”
 This analysis comes from Kenji Matsuoka, a financial planner with a background in the securities industry.
“Looking at the prospectus for this space fund, it began operations in December 2019. Mitsui Sumitomo Trust initially set an ambitious fundraising target of 50 billion yen. 
But as it turned out, even six years after its launch, net assets hadn’t even reached 5 billion yen, and only recently have they finally climbed into the 7 billion yen range. This addition to the regular investment program clearly reveals the fund manager’s shrewd commercial instincts, capitalizing on the public buzz.”  
 SpaceX’s listing on the Nasdaq sent investors around the world into a frenzy. In Japan, too, there was an extraordinary surge of excitement, particularly among retail investors, with buy orders flooding in totaling over 1 trillion yen—far exceeding the 300 to 400 billion yen allocation set aside for the Japanese market.
 It’s not hard to understand why asset management companies would jump on this bandwagon, seeing it as a golden opportunity. What’s questionable is the Financial Services Agency’s decision. Why did they approve “such a lackluster investment trust” (Mr. Matsuoka) for inclusion in the NISA regular investment quota at this late stage?
 “ Perhaps, spurred by the frenzy surrounding Space X’s stock market debut, the Financial Services Agency perceived a growing public interest in space-related stocks and rushed through the approval process. If that’s the case, the Financial Services Agency is making a major miscalculation.”
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<div data-friday-nextpage-lead=" But the crucial “Space X” isn’t even included!?"></div>
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<figure id="attachment_475878" aria-describedby="caption-attachment-475878" style="width: 5900px" class="wp-caption alignnone"><a href="#" data-ident_hash="777f9d1d"><img src="https://res.cloudinary.com/fridaydigital/image/private/t_article_image/wpmedia/2026/07/a86acbf0a582df5e50067d52d5ec255e.jpg" alt=""></a><figcaption id="caption-attachment-475878" class="wp-caption-text">&#8220;Even Space X&#8217;s stock price has already fallen to half its peak right after the IPO&#8230;&#8221; said Mr. Matsuoka</figcaption></figure>
<h3> All Talk and No Action? The Trap of Space X’s Absence</h3>
 What exactly is the misunderstanding here?
 “ SpaceX may have a strong image as a space-related company, but it’s actually an AI company. Elon Musk himself has boasted that he will ‘launch communication satellites and build a massive AI data center in space.’ 
It’s plain to see from SpaceX’s prospectus,available on the official website of Mizuho Securities—the sole Japanese financial institution serving as a lead underwriter. A full 76% of its most recent capital expenditures went to the AI sector, while space-related and telecommunications businesses account for only about 20% of the remainder. “ It’s safe to say this is an AI company that has gone all-in on the sector.”
 It’s hard to believe that the Financial Services Agency was unaware that Space X’s core business is AI infrastructure, not space development…
 There are other facts that make one scratch their head. The name “Space X”—the very company in question—is nowhere to be found on the list of constituents for the “SMT MIRAIndex Space.”
 And that’s no surprise. This space fund operates under rules that mechanically select stocks based on data such as past sales performance and trading volume. As a result, Space X—which has just gone public and lacks sufficient historical data—is automatically excluded.
“Looking at the fund’s sales materials, the top 10 holdings as of the end of May include many solid U.S. defense and capital goods companies, such as ‘Curtiss-Wright,’ which manufactures aircraft parts, and ‘Lockheed Martin,’ a long-established defense contractor. 
In other words, there is a significant disconnect between the fund’s name and its actual composition. Even if investors intend to invest in ‘cutting-edge space businesses,’ they will actually end up buying traditional defense and aircraft parts stocks.”
 While being a “misleading label” alone is enough to undermine credibility, Mr. Matsuoka also criticizes the fund’s “management fees” and “performance.”  
 “This fund claims to be managed based on ‘smart beta’—a ‘smart, proprietary index’ that outperforms the market average by selecting the top 50 most capital-efficient stocks from global space-related companies. However, its actual performance lags behind market benchmarks such as the S&amp;P 500 and the All-Country Index.”  
What’s more, the management fee is high at 0.77%. Given that, it makes more sense to invest in the S&amp;P 500 or Orkan, which offer both strong performance and lower fees, doesn’t it? ”
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<h3> Expert Warning! Why Thematic Funds Are a No-Go</h3>
 As mentioned earlier, the “SMT MIRAIndex Space” is a thematic fund. These are investment trusts that include stocks aligned with themes currently trending in the public eye; while their investment targets are easy to understand, they’ve been criticized for their high risk.
 “ It’s a common consensus among financial professionals that ‘theme-based funds are generally not recommended.’ The main reason is that they tend to result in ‘buying at the peak.’ 
 The main reason asset management companies launch theme-based funds in the first place is that they’re trending and easy to sell. However, by the time a theme becomes a hot topic, various positive factors have already been factored into the stock prices of the constituent stocks, and in many cases, they’ve already peaked.”  
That’s why I suspect Sumitomo Mitsui Trust’s space fund could also follow a typical ‘buying at the peak’ pattern.”
 Furthermore, Mr. Matsuoka sounds a warning regarding the view that the space industry is a promising growth sector, stating, “We cannot necessarily be optimistic.”
 “ For example, some people paint a picture where ‘capital inflows from giant corporations will cause the stock prices of all space-related companies to skyrocket,’ but that’s a major mistake. In reality, the space industry is still limited to communications satellites. Related companies might see some profit, but it won’t have enough impact to dramatically boost the fund’s performance.”
▼Kenji Matsuoka: Financial writer and financial planner. After working as a market analyst at a securities firm, he became independent in 1996. He writes articles on finance and asset management, primarily for business and economic magazines.His books include *The First-Year Guide to Robo-Advisor Investing* and *Easy to Understand with Plenty of Illustrations! The Book That Guarantees You’ll Save Money with Cashless Payments*.
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 Sayuri Saito

 Afro

 An unusual “space fund” has appeared under the new NISA program. However, experts are warning that “the key player, SpaceX, is missing, and the fund is actually composed of defense stocks.” We explain the pitfalls of theme-based funds, which carry high fees and the risk of buying at inflated prices.

Unprecedented &#8220;Space Fund&#8221; Approved Under the New NISA&#8230; Experts Expose Its &#8220;All Show and No Substance&#8221; Content and the Pitfalls of &#8220;Theme-Based Funds&#8221;

Unprecedented “Space Fund” Approved Under the New NISA… Experts Expose Its “All Show and No Substance” Content and the Pitfalls of “Theme-Based Funds”

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