Procure Space ETF (UFO)

Overview

The Procure Space ETF (UFO) focuses on companies involved in space-related activities, encompassing space exploration, satellite operations, and space technology development. It aims to provide investors with exposure to the growing space economy, encompassing both pure-play space companies and those with significant space-related divisions. The fund is passively managed, aiming to track the S-Network Space Index.

Reputation and Reliability

ProcureAM is a boutique ETF provider known for thematic ETFs, particularly in the space sector. While a smaller issuer, they have established themselves as specialists in niche investment areas.

Management Expertise

The management team at ProcureAM has experience in ETF development and management, with a focus on identifying and capitalizing on emerging investment themes.

Goal

To provide investment results that, before fees and expenses, correspond generally to the total return performance of the S-Network Space Index.

Investment Approach and Strategy

Strategy: The ETF tracks the S-Network Space Index, a benchmark designed to represent companies involved in the space industry. The index employs a rules-based methodology for constituent selection and weighting.

Composition The ETF primarily holds stocks of companies involved in space-related industries, including satellite manufacturers, rocket builders, and companies providing space-based services.

Market Share: Data not readily available.

Total Net Assets (AUM): 90490000

Key Competitors

• ARK Space Exploration & Innovation ETF (ARKX)
• SPDR S&P Kensho Final Frontiers ETF (ROKT)
• iShares U.S. Aerospace & Defense ETF (ITA)

Competitive Landscape

The space ETF industry is relatively new but growing. UFO was one of the first space ETFs, giving it a first-mover advantage. However, ARKX has gained significant traction due to Ark Invest's popularity. ROKT offers a broader frontier technology exposure, while ITA is a broader aerospace and defense ETF. UFO's advantage lies in its pure-play space focus, but its relatively smaller AUM compared to ARKX could be a disadvantage.

Historical Performance: Data not available, refer to official fund factsheet.

Benchmark Comparison: Data not available, refer to official fund factsheet for benchmark comparisons.

Expense Ratio: 0.75

Average Trading Volume

The average trading volume of Procure Space ETF is moderate, which can affect ease of trading.

Bid-Ask Spread

The bid-ask spread fluctuates depending on market conditions and volume.

Market Environment Factors

Economic growth, technological advancements, and government spending on space exploration significantly impact the space industry and the performance of space ETFs like UFO.

Growth Trajectory

The space industry is experiencing growth driven by increased private investment, satellite launches, and space tourism. UFO's growth is dependent on the continued expansion of this sector.

Competitive Edge

UFO offers a relatively pure-play exposure to the space industry, focusing specifically on companies involved in space-related activities. This targeted approach may appeal to investors seeking direct exposure to the space economy. The fund's rules-based index construction also provides transparency in its holdings. The fund was also the first pure play space ETF to enter the market. Its first-mover advantage allowed UFO to establish brand recognition.

Volatility

Procure Space ETF is subject to moderate to high volatility given the growth-oriented nature of the space sector and the relatively small size of many of the companies it holds.

Market Risk

The ETF is susceptible to market fluctuations and downturns, particularly those affecting technology and aerospace companies.

Ideal Investor Profile

Investors with a long-term investment horizon who are bullish on the growth prospects of the space industry and are comfortable with moderate to high risk.

Market Risk

Best suited for long-term investors seeking thematic exposure to the space sector.

Procure Space ETF (UFO) provides focused exposure to the burgeoning space industry. While offering a pure-play approach, its relatively smaller AUM and higher expense ratio compared to some competitors may be drawbacks. Investors should carefully consider their risk tolerance and investment objectives before investing. The ETF's performance is heavily reliant on the continued growth and innovation within the space sector. It suits investors seeking specific thematic exposure to the space economy.

Data Sources:

• ProcureAM Website
• ETF.com
• Yahoo Finance
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market share and performance data are based on available information and may not be exact. Investors should conduct their own research before making investment decisions.