What Is the UFO ETF? A Complete Guide to Returns, Expense Ratio, Holdings and Alternative ETFs
A leading thematic ETF that invests in companies contributing to the global space economy, including space and aerospace operations and satellite communications.
SubscribeWhat Is This ETF?
The fund tracks the S-Network Space Index and gives priority to pure-play space companies that generate a significant portion of their revenue from space-related businesses. It covers the full range of space infrastructure, including satellite manufacturing and operations and ground control equipment.
It suits investors who want exposure to the full-fledged arrival of the private space development era and the long-term growth potential of the space industry.
It is a passively managed (index-tracking) ETF launched in 2019 by ProcureAM.
How Does It Invest?
| Item | Details |
|---|---|
| Tracking Index | S-Network Space Index |
| Management Style | Passive (pure space theme) |
| Rebalancing Frequency | Semiannual |
| Dividend Frequency | Quarterly |
| Total Expense Ratio | 0.75% |
The fund divides the space industry into several subsectors when selecting stocks. It holds companies whose actual revenue base lies in the space industry, such as satellite communications, data transmission, and space and aerospace defense, on a market-cap-weighted basis.
- Strict selection based on the share of revenue from the space industry
- A portfolio spanning the entire global space value chain
Size and Costs
Assets under management (AUM) stand at $453.8M, and the Expense Ratio is 0.75% per year.
As is typical of thematic products, fees run higher than those of a standard index ETF, but the fund stands out by offering pure exposure to the specific space industry.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeGrowth at related companies is drawing attention as private companies launch more often and the low Earth orbit satellite communications market expands. However, the fund has a strong technology-stock character that is sensitive to the interest rate environment, so returns can fluctuate with changes in market liquidity.
As its value as a new growth industry comes into focus, capital seeking future innovation themes has been flowing in steadily. With the paradigm of space development shifting from government-led to private-sector-led, the long-term outlook for fund flows is positive.
Pros and Cons
The fund offers a chance to get in early on the initial growth phase of the space industry, but investors should consider its high volatility and the uncertainty surrounding the industry.
💪 Key Strengths
⚠️ Points of Caution
Alternative ETFs and Related Products
While PAVE and IFRA shown in the table focus on ground infrastructure, UFO covers space infrastructure, and it shares a thematic focus with products such as MSOS, AIFD and MILN. A direct competitor in the space theme is ARKX, and for those who want to focus on the more traditional aerospace and defense sector, ROKT can also be an alternative.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 PAVE | Global X U.S. Infrastructure Development ETF | $54.45 | +1.7% | $13.9B | 0.47% | 0.79% | +12.8% |
 IFRA | iShares U.S. Infrastructure ETF | $58.64 | +0.6% | $4.1B | 0.30% | 1.73% | +11.4% |
 MSOS | AdvisorShares Pure US Cannabis ETF | $4.20 | +6.6% | $727.8M | 0.78% | - | -6.5% |
 FAI | First Trust Bloomberg Artificial Intelligence ETF | $49.79 | -2.7% | $247.8M | 0.65% | - | +14.7% |
 AIFD | TCW Artificial Intelligence ETF | $45.53 | -3.6% | $121.0M | 0.75% | - | +18.8% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| GRMN | Garmin Ltd | 0.07% | $274.29 | +0.6% | $52.9B | 26.3 | 1.5% |
 TRMB | Trimble Inc | 0.06% | $65.84 | +1.4% | $15.4B | - | - |
 VSAT | Viasat Inc | 0.12% | $74.11 | -3.8% | $10.2B | - | - |
 PL | Planet Labs PBC | 0.06% | $12.96 | -3.8% | $4.7B | - | - |
 SIRI | Sirius XM Holdings Inc | 0.11% | $29.57 | +1.9% | $9.9B | 11.9 | 3.65% |
 GSAT | Globalstar Inc | 0.05% | $82.94 | +0.8% | $10.7B | - | - |
| RKLB | Rocket Lab Corp | 0.05% | $52.07 | -4.9% | $31.2B | - | - |
 SATS | Strive Inc - 15% PRF PERPETUAL USD 100 - Ser A SATS Stock | 0.05% | $92.08 | -1.3% | $2.8B | - | - |
Investor Checkpoints
The space industry is an innovation theme still in its early growth stage, so before investing, you should closely review the following key factors and weigh them against your own risk tolerance.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 🚀 Revenue Purity | Check the actual share of space-related revenue among holdings | Ongoing monitoring |
| 📊 Technological Competitiveness | Review individual companies' technical capabilities, such as satellite technology and launch success rates | Needs review |
| 💵 Expense Level | Check how the management fee of a thematic ETF affects long-term returns | Reasonable |
| 🏛️ Government Budgets | Monitor spending trends on space-related budgets in major countries, including the US Space Force | Holding steady |
Accidents or failures during space exploration and technology development can trigger sharp short-term share price declines. In addition, the industry's low maturity calls for patience over a long-term horizon.
It can be a suitable choice for investors who want to invest early in the space economy, which is regarded as a core industry of the future. However, because volatility is very high, adjusting the position size appropriately within your portfolio is essential.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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