With Elon Musk’s SpaceX eyeing an initial public offering that could value the company at over $1 trillion, investors looking for exposure to the space industry can turn to a space ETF that has already delivered outsized returns in 2025.
The Procure Space ETF (UFO) gained 62.6% year-to-date, nearly tripling the 23.4% average return for its global equities category, according to ETF Database. The fund returned 65.3% over the past year, outpacing the category average of 19.6%.
The performance reflects growing interest in space-related companies, from satellite communications providers to rocket manufacturers. UFO tracks 45 companies globally that generate revenue from space-related businesses, offering exposure to an industry that could get a major boost if SpaceX moves forward with its IPO plans.
Reuters reported this week that SpaceX is exploring an IPO that could raise more than $25 billion as early as June. Investors called it potentially the “craziest IPO in the history of the stock market,” with substantial demand expected from retail investors.
UFO attracted $41.2 million in net inflows over the past year, according to ETF Database, bringing its assets under management to $117.9 million. The fund launched in April 2019 and charges a 0.75% expense ratio.
UFO Holdings Span Communications to Defense
The ETF’s top holding is AST SpaceMobile Inc. (ASTS) at 8.5% of assets. It’s followed by Globalstar Inc. (GSAT) at 6.58% and Planet Labs PBC (PL) at 5.58%, according to ETF Database. Other holdings include EchoStar Corp. (SATS), ViaSat Inc. (VSAT), and Rocket Lab Corp. (RKLB).
