By ProcureAM Research
Thousands of investors just got in on SpaceX*, but they’re missing out on the bigger picture. The space industry beyond SpaceX we believe has the diversification and commercial upside to compete with traditional aerospace investments in portfolios across the board.
SpaceX’s initial public offering on June 12th, 2026 raised nearly $75 billion1 with a valuation of $1.8 trillion,2 a figure that many still cannot fathom. While SpaceX brought attention to the space industry, evaluating investment in space through SpaceX alone is grossly misleading. Investors who focus on just SpaceX are skipping the actual comparison that may put space ahead of classic aerospace and defense (A&D) investments: revenue dependence and what that means for an investor’s exposure.
Throughout the A&D industry, government reliance provides the risk of a singular revenue stream. In FY2025, U.S. government customers accounted for approximately 72% of Lockheed Martin*’s consolidated sales.3 Northrop Grumman*’s government-concentrated sales are historically cited around 95% to 98%.4 Investors should not ignore this massive concentration risk. Lockheed Martin’s own FY2024 10-K filing admits that any decision by the U.S. or other allied governments to cut spending would have an adverse impact on the company’s business.5 This is not a hypothetical situation. During the Federal government’s shutdown in 2025, General Dynamics* was forced to enter the commercial paper market to cover non-payment issues.6
SpaceX, in a way, faces this same risk as a leading player in the space industry. What sets SpaceX apart from the A&D majors is the scale of its commercial revenue: its Starlink business alone generated $11.4 billion in 20258 — about 61% of the company’s roughly $18.7 billion in total revenue — which offsets its government dependency.7
| The key factor that investors have missed in comparing space and A&D is that space generates about 78% of its revenues from commercial applications and only 22% from governments.9 |
The Procure Space ETF® (ticker: UFO) demonstrates the diversity of the space industry. As the first pure-play space exchange-traded fund, its holdings include rocket and satellite manufacturers, as well as other space-related communications and industrial firms:
UFO SECTOR ALLOCATION
How UFO’s holdings break down across industry sectors.10
| Industrials |
52.17% |
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| Communications & Media |
35.15% |
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| Technology |
7.79% |
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| Consumer Discretionary |
4.88% |
||||
As of June 30, 2026
The Procure Space ETF® is a more complete visualization of what the space industry really is, much more commercialized and innovative rather than federally reliant. To capture the breadth of the industry, UFO has grown from 30 holdings to 64 as of June 2026,10 and its assets under management grew from $33 million to over $1 billion between the end of 2024 and May 2026.11
A McKinsey & Company report estimates the global space economy to reach $1.8 trillion by 2035, up from $630 billion in 2023.12 This is nearly twice the projected rate of global GDP growth and is just the beginning.
UFO’s pure play, diversified constituent base means no single company, including SpaceX itself, drives the fund’s performance. While space stocks broadly saw volatility around SpaceX’s June IPO, UFO’s construction spreads that exposure across dozens of companies rather than concentrating it in one name.
As of June 30, 2026, UFO’s year to date NAV Return was 31.76% and Market Value Return was 31.25%.13
Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Funds may be lower or higher than the performance quoted. All performance is historical and includes reinvestment of dividends and capital gains. Performance data current to the most recent month end may be obtained by calling 866-690-ETFS (3837).
The comparison between space and A&D is one of diversification and investor exposure. Investors with different needs and tolerances may pursue one sector or another. Regardless, it seems like space is destined for the stars.
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FOOTNOTES
1. CNBC, “SpaceX Raising $75 Billion in Record-Setting IPO as Nasdaq Debut Awaits,” https://www.cnbc.com, June 2026.
2. SmartAsset, “SpaceX IPO: Valuation, Timeline and Investment Options,” https://smartasset.com, June 2026.
3. Lockheed Martin Corporation, Form 10-K for Fiscal Year 2025, https://www.sec.gov, January 2026.
4. Northrop Grumman Corporation, Form 10-K for Fiscal Year 2025, sales by customer category (U.S. Government $35,183M and International $5,990M of $41,954M in total sales; “Other Customers” $781M), https://www.sec.gov, February 2026.
5. Lockheed Martin Corporation, Form 10-K for Fiscal Year 2024, https://www.sec.gov, January 2025.
6. Federal News Network, “Vendors Starting to Take Shutdown-Related Austerity Measures,” https://federalnewsnetwork.com, October 2025; General Dynamics Corporation, Form 10-Q, https://www.sec.gov, 2025.
7. SpaceX, Form S-1 Registration Statement, U.S. Securities and Exchange Commission, 2026, as reported in Via Satellite, “SpaceX’s IPO Filing Gives First Look Into Company’s Financials” (Starlink $11.4 billion, about 61% of $18.7 billion total 2025 revenue), https://www.satellitetoday.com, May 2026.
8. SmartAsset, “SpaceX IPO: Valuation, Timeline and Investment Options,” https://smartasset.com, June 2026.
9. Space Foundation, The Space Report 2025 Q2 (commercial sector 78%, government 22% of the global space economy), https://www.spacefoundation.org, July 2025; corroborated by Orbital Radar, “The Global Space Economy,” https://orbitalradar.com, 2026.
10. ProcureAM, LLC, Procure Space ETF® (UFO) Fact Sheet, data as of June 30, 2026, https://procureetfs.com/ufo/.
11. ProcureAM, LLC, “Procure Space ETF (UFO) Surpasses $1 Billion in Assets Under Management,” https://procureetfs.com, May 27, 2026.
12. McKinsey & Company and World Economic Forum, “Space: The $1.8 Trillion Opportunity for Global Economic Growth,” https://www.weforum.org, April 2024.
13. ProcureAM, LLC, “UFO Fund Facts and Performance,” https://procureetfs.com/ufo/, July 2026.
IMPORTANT INFORMATION
*As of July 14, 2026, Space Exploration Technologies Corp (SPCX) was a 4.70% holding, Northrop Grumman Corp (NOC) was a 2.68% holding, Lockheed Martin Corp (LMT) was a 2.62% holding, and General Dynamics Corp (GD) was a 0.00% holding in the Procure Space ETF® (NASDAQ: UFO).
For a complete list of holdings in UFO, visit: https://procureetfs.com/ufo/. Fund holdings and sector allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security.
Please consider the Fund’s investment objectives, risks, and charges and expenses carefully before you invest. This and other important information is contained in the Fund’s summary prospectus and prospectus, which can be obtained by visiting procureetfs.com. Read carefully before you invest.
Investing involves risk. Principal loss is possible. The Fund is also subject to the following risks: Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the funds. Brokerage commissions will reduce returns.
Aerospace and defense companies can be significantly affected by government aerospace and defense regulation and spending policies. The exploration of space by private industry and the harvesting of space assets is a business based in future and is witnessing new entrants into the market. Investments in the Fund will be riskier than traditional investments in established industry sectors. The Fund is considered to be concentrated in securities of companies that operate or utilize satellites which are subject to manufacturing delays, launch delays or failures, and operational and environmental risks that could limit their ability to utilize the satellites needed to deliver services to customers. Investing in foreign securities are volatile, harder to price, and less liquid than U.S. securities. Securities of small- and mid-capitalization companies may experience much more price volatility, greater spreads between their bid and ask prices and significantly lower trading volumes than securities issued by large, more established companies. The Fund is not actively managed so it would not take defensive positions in declining markets unless such positions are reflected in the underlying index. Please refer to the summary prospectus for a more detailed explanation of the Funds’ principal risks. It is not possible to invest in an index.
UFO is distributed by Quasar Distributors LLC.
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