Rocket Lab 34% Surge Lifts Procure Space ETF (UFO)

Rocket Lab shares climbed 34% on Friday, their largest single-day gain on record, after the company reported first-quarter revenue above analyst estimates and disclosed a $190 million contract with the U.S. Department of Defense. Company officials described the agreement as the largest contract in Rocket Lab’s history and said it increases the company’s revenue backlog.

The rally in Rocket Lab shares pushed gains across space-focused investments. The Procure Space ETF (ticker: UFO), which has a 4.8% weight in Rocket Lab, rose more than 7% over the five trading days that included Friday. The ETF has returned about 41% year-to-date, roughly 136% over the past 12 months and about 10.3% over the last month. The fund charges a 75 basis point fee and follows the S-Network Space Index.

After Friday’s trading, UFO’s share price moved above both its 50-day and 200-day simple moving averages, a technical indicator some investors use to assess momentum. The ETF holds global companies involved in satellite products and services, space hardware, ground equipment, rocket and satellite manufacturing and related services, and allocates weight based on the portion of company revenue tied to space activities.

Rocket Lab’s stock has risen substantially over the past year amid increased government and commercial spending on space capabilities. Market participants point to geopolitical tensions and developments in rocketry and unmanned systems as factors influencing demand for launch and satellite services.

VettaFi LLC serves as the index provider for the S-Network Space Index and receives a license fee. VettaFi is not the issuer, sponsor or seller of the Procure Space ETF and has no obligation related to the fund’s issuance or trading.