Key Takeaways While many investment strategies struggled to bring in results in March, space companies did rather well and are continuing to in April. The Procure Space ETF (UFO) is reporting significant year to date returns, propelled by strong underlying stock picking from its respective index.
Shares in Alien Metals (AIM: UFO) rose 16% to 0.12p after its joint venture partner West Coast Silver (ASX: WCE) launched a 1,500-metre diamond drilling programme beneath the Elizabeth Hill silver mine in the Pilbara region of Western Australia. Alien holds a 30% interest in the Elizabeth Hill project through a joint venture with West Coast Silver, which is operating the programme.
Global markets wrestled with volatility during the month of March, but a distinct pocket of strength emerged in the Procure Space ETF (UFO). The fund saw certain key constituents deliver strong returns during a month when investors sought shelter in safe haven assets.
UFO returned 66.36% in 2025 while the S&P 500 gained a fourth of that. With a SpaceX IPO looking increasingly likely before year-end, the question is whether the fund can repeat that performance in 2026 — and whether investors understand what they're actually buying.
UFO surges to a 52-week high after a 165.87% rebound, fueled by SpaceX IPO buzz and rising interest in space-driven tech and defense trends.
The Procure Space ETF has surged ~98% YTD, propelled by defense spending and demand for satellite data in the LEO economy. UFO is heavily weighted toward small caps, unprofitable companies, and high forward P/Es, amplifying its speculative, high-beta profile (beta 1.82). Current valuations appear stretched, with positive catalysts already priced in and limited fundamental support for further upside.
Investors are plowing assets into ex-U.S. equities, clamoring for ways to diversify away from U.S. equities. While a bit tongue in cheek, they could go even further: into space.
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.
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.
The Procure Space ETF (UFO) completed its quarterly rebalance with a rotation toward emerging space companies, adding four new holdings while increasing exposure to lunar exploration and satellite infrastructure providers, according to index reconstitution data. The shift reflects the index's methodology of prioritizing newer space businesses as the sector matures beyond traditional defense contractors.
The Procure Space ETF offers concentrated exposure to the space sector and has outperformed over the past year. UFO's portfolio favors high-growth, speculative space firms over diversified large-cap industrials, capturing sector upside but increasing volatility and risk. Sector-specific catalysts include rising satellite imagery demand from geopolitical tensions, supportive U.S. government policy, and anticipation of a SpaceX IPO.
With Elon Musk's SpaceX eyeing an initial public offering that could value the company at over $1 trillion, investors looking for exposure to the space industry can turn to a space ETF that has already delivered outsized returns in 2025. The Procure Space ETF (UFO) gained 62.6% year-to-date, nearly tripling the 23.