This "UFO" ETF Is Among the Few Real Ways To Invest In The Space Economy

"Most space funds quietly fill the bucket with Boeing ( NYSE:BA | BA Price Prediction), Lockheed Martin ( NYSE:LMT), and Honeywell ( NASDAQ:HON), then call it a day. You end up with aerospace primes when what you wanted was the companies actually launching rockets and beaming broadband from low Earth orbit. Procure Space ETF ( NYSEARCA:UFO) is one of the few funds that skips the switcheroo."

"UFO tracks the S-Network Space Index and screens for companies that derive meaningful revenue from space-related activities. The top three positions are Planet Labs ( NYSE:PL), EchoStar ( NASDAQ:SATS), and Sirius XM ( NASDAQ:SIRI) (Sirius maintains a fleet of satellites). The top 10 names make up about half of net assets, so this is a concentrated bet on a real industry, not a closet aerospace index."

"By sector, the fund is 46% Media & Communications and 43% Industrials, which is just the prospectus way of saying satellite operators and rocket builders. About 71% sits in U.S. names. Japan, Canada, and Luxembourg round out a portfolio that reflects where the world's space companies are actually domiciled."

"UFO does not collect option premium or harvest yield. It owns operating businesses whose fortunes rise and fall with launch cadence, satellite broadband subscriber growth, and government contracts. Rocket Lab ( NASDAQ:RKLB) has run about 249% over the past year, and AST SpaceMobile ( NASDAQ:ASTS) is up roughly 159% over the same"

UFO provides exposure to companies with meaningful revenue from space-related activities by tracking the S-Network Space Index. Many space ETFs instead hold aerospace primes, but UFO screens for space-focused operators and infrastructure providers. The top holdings include Planet Labs, EchoStar, and Sirius XM, with the top 10 representing about half of net assets, creating a concentrated portfolio. The fund is heavily weighted toward Media & Communications and Industrials, with most holdings domiciled in the United States. Its performance depends on operating business drivers such as launch cadence, satellite broadband subscriber growth, and government contracts, rather than option premium or yield strategies.

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