It has been over 60 years since humanity first stepped into space. Today, space development is no longer just about exploration—it has become a major driver of global economic growth. In 2025, the United States and other major countries are investing billions of dollars into satellite internet, space tourism, and planetary exploration, accelerating advancements in next-generation technologies. With private companies actively entering the market, the space industry is undergoing revolutionary changes.
As part of this transformation, Elon Musk’s SpaceX Starlink is expanding into South Korea, paving the way for the widespread adoption of low-earth orbit satellite communication services. If the space industry continues its rapid growth, which companies should investors consider? Today, I'm gonna introduce an ETF focused on investments in the aerospace and satellite industries.
ETF Overview
- ETF Name: Procure Space ETF
- Ticker: UFO
- Market Cap: $57.3M (approx. 78.6 billion KRW, as of 06/02/2025)
- Share Price (NAV): $24.47 (as of 06/02/2025)
- Trading Volume: 86,742 shares (as of 06/02/2025)
- Annual Expense Ratio: 0.75%
Investment Strategy
- Focused on aerospace and satellite industries → invests in companies that generate at least 50% of revenue from space-related businesses
- A “pure” space-focused ETF → ideal for investors who believe in the long-term growth of the space industry
What industries does UFO invest in?
- Rocket & satellite manufacturing and operations
- Ground equipment manufacturing for satellite systems
- Space technology and hardware development
- Space-based imaging and intelligence services
- Telecommunications, television, and radio broadcasting
Additionally, UFO includes companies involved in satellite internet, aerospace technology, and defense industries, which are expected to see revenue growth as satellite internet technology advances.
Top 10 Holdings
Ticker | Company Name | Industry | Business | Weight |
|---|---|---|---|---|
RKLB | Rocket Lab Corp | Aerospace | Rocket launch & small satellite development (Electron rocket, Photon satellite) | 6.61% |
LUNR | Intuitive Machines Inc | Aerospace | Lunar exploration & space logistics (Nova-C lunar lander) | 6.36% |
9412 JP | SKY Perfect JSAT Holdings Inc | Satellite Communications | Japan’s largest satellite telecom & broadcasting provider (JSAT services, satellite TV) | 4.99% |
MDA CN | MDA Space Ltd | Aerospace | Satellite systems & robotics (Canadarm robotic arm, satellite antennas) | 4.73% |
TRMB | Trimble Inc | Technology | GPS & location-based software solutions (Trimble GPS, construction/agriculture data solutions) | 4.65% |
SIRI | Sirius XM Holdings Inc | Broadcasting | Satellite radio & audio streaming (SiriusXM satellite radio, Pandora streaming) | 4.30% |
GRMN | Garmin Ltd | Technology | Navigation & GPS-based wearable devices (Garmin GPS, smartwatches) | 4.20% |
PL | Planet Labs PBC | Aerospace | Earth observation & data analytics via satellites (Dove small satellites, Earth monitoring services) | 4.19% |
IRDM | Iridium Communications Inc | Satellite Communications | Mobile satellite services & global connectivity (Iridium satellite phones, IoT networks) | 4.10% |
SESG FP | SES SA | Satellite Communications | Satellite-based telecom & media (SES satellites, O3b low-earth orbit network) | 4.03% |
Comparing UFO with ITA – Defense vs. Space Industry Investments
Apart from UFO, ITA ETF is a well-known investment option for aerospace and defense industries.
ITA ETF consists of major U.S. defense and aerospace companies like Lockheed Martin, Boeing, and Northrop Grumman, meaning its performance is significantly influenced by geopolitical factors. Since ITA invests in traditional defense and aerospace companies, its value can fluctuate based on global military spending and policy changes.
In contrast, UFO ETF is entirely focused on space-related businesses. Its portfolio includes companies engaged in satellite communications, rocket launches, and Earth observation, making it directly linked to the growth of the space industry. Notably, 70% of UFO’s holdings are U.S.-based companies, while 15% are Japanese firms, reflecting the expanding global space economy.
Conclusion
For investors confident in the long-term growth of space technology, UFO may be a more relevant choice compared to traditional defense ETFs. However, UFO’s smaller fund size and lower liquidity pose potential risks, particularly for traders requiring flexibility in asset management. Due to the high proportion of emerging companies, UFO ETF might carry more volatility and uncertain profitability compared to ITA.
Thus, rather than investing in the ETF itself, selecting individual stocks from UFO’s top holdings may be a better strategy. Targeting leading companies in space technology can help mitigate risk while leveraging future growth opportunities in the sector.
댓글
댓글 쓰기