UFO ETF Rises 12% in April on Strong Space Stocks

Procure Space ETF (UFO) rose 12% in April, driven by double-digit gains in several large holdings and net inflows of roughly $321 million for the month.

The fund is up more than 30% year-to-date through April. ViaSat led the top holdings with about a 46% gain after securing expanded defense contracts and aviation connectivity milestones. Rocket Lab climbed roughly 37% as it strengthened its position in the small- to medium-satellite launch market. Iridium Communications gained about 26%, reflecting steady cash flow and demand for its cross-linked satellite network.

April inflows of about $321 million amounted to nearly 65% of the roughly $500 million in net inflows the ETF has attracted so far this year. The ETF tracks the S-Network Space Index, which will be rebranded as the VettaFi Space Index on May 15.

Procure Space was the market’s first pure-play ETF focused exclusively on companies that generate revenue from the space industry. The fund held 53 positions as of April 5, covering launch services, satellite connectivity and in-orbit operations.

One holding outside the top 10 is Momentus, which develops an Orbital Transfer Vehicle called Vigoride. Vigoride moves small satellites from initial drop-off orbits to their precise operational positions. Momentus is expanding into on-orbit servicing, hosted payloads and support for in-space manufacturing.

“UFO has had a great run from a performance and a flows standpoint,” Todd Rosenbluth, head of research at TMX VettaFi, noted. He added that ETFs can provide exposure to small- and mid-cap companies across the space sector.

VettaFi LLC is the index provider for the ETF and receives an index licensing fee. VettaFi is not the issuer, sponsor or seller of the fund and has no obligation in the ETF’s issuance, administration, marketing or trading.