SpaceX IPO Spurs UFO ETF to Retool Index

Procure Investments said the Procure Space ETF (UFO) will follow updated rules for the VettaFi Space Index after VettaFi revised the benchmark to accommodate a potential SpaceX listing. The revision was completed recently to allow large private companies to be included if they go public.

UFO charges 75 basis points and applies a tier-weighted methodology across target holdings. The approach assigns different weightings to stocks to limit single-name concentration while maintaining exposure to companies that make space hardware, provide satellite imaging and intelligence, offer launch services, and develop unmanned aerial systems.

The fund reported strong recent returns. Year-to-date performance stands at about 68.98%, the three-month return at roughly 46.86% and the 12-month return at approximately 165%. Assets under management have risen above $1.2 billion.

Index providers and ETF managers have been adjusting eligibility rules and weighting formulas to allow large private companies preparing for listings to appear in benchmarks. VettaFi’s recent index revision is the mechanism that would permit SpaceX to be added to UFO’s benchmark once SpaceX completes a public offering and meets the revised criteria.

VettaFi LLC serves as the index provider for the VettaFi Space Index and receives an index licensing fee. VettaFi is not the issuer, sponsor, endorser or seller of UFO and has no obligation or liability in connection with the ETF’s issuance, administration, marketing or trading.

SpaceX’s IPO has been projected at an estimated $86.5 billion, a size that would place it among the largest U.S. listings by estimated capital raise. Fund managers and index providers have updated rules ahead of the expected debut so funds that track space-focused benchmarks can add newly public companies that meet eligibility requirements.