Space-themed ETFs are surging, fueled by commercial launch advances and renewed investor demand. The Procure Space ETF (NASDAQ:UFO), tied to the S-Network Space Index, hit a 52-week high and is up nearly 89% from its lows.
The increase coincided with the successful Aug. 26 test flight of SpaceX’s giant Starship rocket, the vehicle’s first successful payload delivery of eight dummy Starlink satellites after a series of test failures earlier this year.
UFO ETF is trading near 52-week high. Track its prices, live.
Another tailwind is IPO activity coming back to the industry. After years of SPAC domineering and funding deserts, 2025 has witnessed traditional listings getting traction back.
Karman Holdings Inc (NYSE:KRMN) became public in February, surging to around $7 billion in valuation at present; Voyager Technologies Inc (NYSE:VOYG) soon followed. Firefly Aerospace Inc (NASDAQ:FLY) also listed on Nasdaq after its successful landing of its Blue Ghost lunar lander. This new deal flow marks increasing investor demand for space innovation.
ETFs In Focus:
- Procure Space ETF: Tracks those companies involved directly in the space sectors. Expense ratio: 0.94%. Rose over 6.5% on Aug. 26 alone.
- ARK Space Exploration & Innovation ETF (BATS:ARKX): Focused on disruptive aerospace forces in the realm of satellites, drones, and orbital systems. Fees: 0.75%. Up 1.2% on Tuesday.
- Spear Alpha ETF (NASDAQ:SPRX): Wider innovation fund with space investments among other space-age tech. Fees: 0.75%. Added 1.6% on Tuesday.
- SPDR S&P Kensho Final Frontiers ETF (NYSE:ROKT): Tracks frontier technologies related to space and deep-sea exploration. Cheaper option at 0.45% expense ratio. Up 1.6% on Aug 26.
As space technologies move out of niches to the mainstream, investors seek diversified plays that capture growth stories as well as defense tailwinds.
The ETFs provide access to firms that may gain from a series of satellite launches, moon missions, defense contracts, and even potential Mars-era ambitions.
Although volatility is still prevalent, the combination of factors such as technological milestones, government support, and market excitement are providing this space sector with lift-off.
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