Procure Space ETF

UFO

Market cap $371M

On Monday, the Procure Space ETF rose about 3%.

An unfortunate reality facing the world in 2026 is rising geopolitical risk. The year kicked off with a U.S. attack on Venezuela, with the Russian war in Ukraine entering a fifth calendar year.

The investment thesis for nuclear energy is often confined to meeting growing electricity demand. However, a new frontier is emerging that could redefine the sector's growth trajectory: space exploration.

Investors are always looking to the future, and when it comes to imagining the future, it's hard to ignore space. Earth's orbit represents a vast opportunity space, with an ever-growing number of satellites, for example, being launched into operation.

Someone asked me the other day, “What are the hot themes for the new year?”  To start the year, we have seen some pretty impressive outsized performance from several key investment themes.

2025 capped off a record year for orbital launches, confirming that the space industry is more than alive and well. This creates a growth opportunity set for the Procure Space ETF (UFO), which can capture ongoing developments in the industry in 2026.

SpaceX is the most anticipated market debut of the decade, and space ETFs like the Procure Space ETF (NASDAQ:UFO ) , ARK Space & Defense Innovation ETF (BATS:ARKX ) , and State Street SPDR S&P Kensho Final Frontiers ETF (NYSEARCA:ROKT ) will be the biggest beneficiaries.

The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) returned 17.72% for all of 2025, dividends included.

ARKX and other space ETFs are riding a surge as the S&P Kensho Space Index posts a record year, fueled by rising investment and defense focus.

2025 was sprinkled with hints that a thematic exchange-traded fund (ETF) comeback could be in its initial stages. With over $240 million in assets under management (AUM) and growing, the Procure Space ETF (UFO) could be one of those funds to watch in 2026.