Procure Space ETF (UFO)
New issuer launches first space-focused ETF
In April, new issuer ProcureAM rolled out the first ETF to track companies involved in space-related businesses. The Procure Space ETF (UFO) targets companies that generate a significant portion of their revenue from space-based functions, or as the prospectus notes, “any kind of function carried out by hardware, software, or humans physically located in space.”
The fund’s underlying index, the S-Network Space Index, includes companies involved in everything from satellite-based communications to space technology and hardware.
According to the prospectus, the companies in the index must make products that go into space, provide systems that are used in space or—if the company’s products and services are used strictly on earth—space must play an essential role in the company’s business.
The index is weighted by modified market capitalization and two-tiered, with the main tier, classified as nondiversified, representing 80% of the index’s total weight. These are the companies that generate between half and all of their revenues from space-related business. The second tier, classified as diversified, is only 20% of the total index, but it includes stocks that generate less than half their revenue from space-related business lines.
Source: ETF.com. Data and information as of 4/30/2019.
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