What Is UFO? Procure Space ETF

UFO is the Procure Space ETF, launched in April 2019 as the first US-listed exchange-traded fund built entirely around the space economy. It tracks the S-Network Space Index, which selects companies that derive the majority of their revenue from space-related activities such as satellite communications, launch services, Earth imaging, and navigation.

The fund holds roughly 65 to 70 companies and requires at least 80% of the index weight to sit in businesses with substantial space revenue. That design makes UFO a more focused bet on satellites and launch than broad aerospace-and-defense funds, which lean heavily on large defense contractors and commercial aircraft makers.

Approximate weights as of mid-2026; refresh quarterly from ProcureAM (Procure ETF Trust II)'s fund page. Each ticker links to its individual stock guide in Walnut.

UFO's portfolio is led by satellite operators and space-technology firms including Planet Labs, Viasat, Globalstar, Sirius XM, Rocket Lab, EchoStar, Iridium, Garmin, Trimble, and MDA Space. The top ten names account for close to half the fund, so it is meaningfully concentrated.

The mix spans several corners of the industry: imaging and data companies like Planet Labs, connectivity providers like Iridium and Globalstar, launch specialists like Rocket Lab, and navigation and equipment makers like Garmin and Trimble. Because many holdings are small and mid-cap, individual company news can move the fund noticeably.

UFO differs sharply from ITA, the iShares U.S. Aerospace and Defense ETF, which is dominated by defense primes and jet makers like Boeing and RTX. UFO instead concentrates on satellites, launch, and space services, giving far more direct space exposure and far less defense and airline weight.

Compared with actively managed space funds like ARKX, UFO is index-based and rules-driven, sticking to companies that meet its space-revenue screen. That makes UFO more transparent and less dependent on a manager's discretionary calls, though both funds share the concentration and volatility that come with a narrow theme.

UFO's returns track the fortunes of the listed space sector, which has been driven by falling launch costs, growth in satellite broadband, and rising defense and commercial demand for space infrastructure. Performance has been volatile, with sharp rallies and drawdowns tied to funding conditions and sentiment around speculative growth names.

The long-term thesis rests on continued expansion of the space economy, from satellite constellations to Earth observation and space-based communications. Whether that translates into fund returns depends on execution by often-unprofitable holdings, and interest in space ETFs tends to spike around high-profile launches and any anticipated IPOs of large private players.

Walnut is not an investment adviser, and whether UFO fits you depends on your goals, time horizon, and tolerance for risk. UFO is a concentrated, volatile thematic fund with a 0.75% expense ratio, so it behaves very differently from a diversified core holding.

Investors who want targeted space-economy exposure sometimes hold UFO as a small satellite position sized to limit the impact of a large drawdown. If your priorities are broad diversification, low fees, or stable income, a total-market or aerospace-and-defense fund may line up better with your plan.

UFO trades on the Nasdaq and can be purchased through most major brokerages, including Robinhood, Fidelity, Schwab, and Public. Many of these platforms support fractional shares, so you can buy a partial share if a full share is more than you want to commit to a single thematic position.

You can also connect your brokerage account to Walnut to track UFO next to your other holdings, see how it fits your target weights, and build baskets around a space or broader technology theme. Walnut helps you monitor the position; the trade itself is always placed and settled at your own broker.

ETFs are passive bundles; thematic baskets in Walnut let you concentrate within them. If you hold UFO as a core position, these are the themes you might layer on as satellites.

UFO is a satellite-and-launch pure play with a 0.75% fee, far pricier than a broad market fund but the most direct listed way to own the space economy. Treat it as a small thematic satellite position, not a core holding, given its concentration and volatility.

Whether UFO is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is UFO a buy?

UFO yields ~0.5% as of mid-2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see UFO dividend: yield and schedule.