UFO ETF Surges; Index Rebrands as Strive Space

ProcureAM’s Procure Space ETF, ticker UFO, grew from about $50 million to more than $800 million in assets and gained roughly 150% over the past 12 months, ProcureAM CEO Andrew Chanin reported. The fund’s underlying index will be renamed the Strive Space Index on May 15 and will adopt a fast-track rule to include mega-cap space IPOs the day after their IPO price is established.

Under the new provision, a qualifying space company that prices a public offering will be eligible for inclusion in the index the day after pricing is known rather than waiting for the next periodic reconstitution. The change is designed to allow ETFs tied to the index to reflect large new listings without delay.

Chanin attributed inflows and performance to renewed investor interest in commercial launch providers and satellite manufacturers, and to fresh public offerings within the sector. He described a potential SpaceX IPO as “a catalyst for the theme.” Shares of companies such as Rocket Lab have risen during the past year and helped boost UFO’s returns.

Paul Baiocchi, head of fund sales and strategy at SS&C ALPS Advisors, said technology and communication services account for more than half of the S&P 500 by market value, while the sectors that supply the physical inputs for AI workloads-materials, utilities and energy-represent less than 10% of the index. “Materials, utilities and energy make up less than 10% of the S&P 500, even as demand for AI compute grows,” Baiocchi added.

SS&C ALPS manages 26 ETFs with nearly $22 billion in assets, including funds focused on electrification infrastructure, energy pipelines, nuclear technology and data center REITs. Those products target the hardware and energy components that support data centers and compute-intensive applications.

The Procure Space ETF tracks companies involved in launch services, satellite manufacturing, ground equipment and related space technologies. The index rebrand and the fast-track IPO inclusion rule will allow ETFs linked to the Strive Space Index to add large newly public space companies shortly after pricing, if those firms meet the index criteria.