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The Space ETF Showdown: Why One Fund Claims It's the Only Real Deal

MarketDash Editorial Team
3 hours ago
When it comes to investing in space, not all ETFs are created equal. The Procure Space ETF says it's the only pure-play bet on companies actually making money from space, while competitors like Ark's ARKX take a much broader approach that includes defense contractors and flying taxis.

If you want to invest in space, you've got options. But according to Andrew Chanin, CEO of Procure Holdings, only one of those options is the real deal.

Since its 2019 launch, the Procure Space ETF (UFO) has staked its reputation on being America's only pure-play space ETF. That means it holds companies with genuine, revenue-generating exposure to the space industry, not just firms that happen to use satellites or have a tangential connection to the sector. With a potential SpaceX IPO possibly materializing in 2026, that distinction could matter more than ever.

Chanin told MarketDash that maintaining this pure-play focus isn't just marketing talk. It's the entire point of the fund.

The Pure-Play Philosophy

"To my knowledge, UFO is the only pure play space ETF out there in the United States," Chanin said. "That's important to us because it has to be, our fund is called the Procure Space ETF. We have the trademark space ETF."

Here's what that actually means: Around 80% of the companies in UFO's index derive the majority of their revenue from space-related businesses, activities, and services. Not some revenue. Not a little revenue. The majority.

"It's taking into account companies that are actually doing space. They're actually making money from space. They're actually a space company," Chanin explained.

Sure, you could argue that almost any public company has some connection to space if you squint hard enough. But investors who want true exposure to the space economy probably want something more direct than a company that happens to use GPS in its delivery trucks.

"Someone that wants to invest in space probably wants to invest in actual space companies," Chanin said. "Anyone can be cute and try to throw in a company and make and argument for why it's space but that doesn't make it space."

Enter the Competition

The Ark Space & Defense Innovation ETF (ARKX), which launched in 2021, takes a decidedly different approach. Cathie Wood's Ark Invest fund casts a wider net, including companies with lower direct exposure to space and stronger ties to adjacent sectors like eVTOLs and defense.

The difference becomes crystal clear when you look at what these funds actually hold.

Tale of Two Portfolios

The top 10 holdings of the Procure Space ETF tell a story of satellite operators, launch providers, and space infrastructure companies:

  1. Rocket Lab Corporation (RKLB): 5.3% of assets
  2. Planet Labs (PL): 5.3%
  3. EchoStar Corporation (SATS): 4.8%
  4. Garmin Ltd (GRMN): 4.7%
  5. Trimble Inc (TRMB): 4.6%
  6. SES SA: 4.5%
  7. Sirius XM Holdings (SIRI): 4.5%
  8. MDA Space Ltd: 4.4%
  9. Viasat Inc (VSAT): 4.4%
  10. Globalstar Inc (GSAT): 4.1%

Now compare that with Ark's top 10:

  1. Rocket Lab (RKLB): 8.9% of assets
  2. L3Harris Technologies (LHX): 8.3%
  3. Kratos Defense & Security (KTOS): 7.8%
  4. Teradyne Inc (TER): 7.3%
  5. Aerovironment Inc (AVAV): 6.8%
  6. Archer Aviation (ACHR): 5.2%
  7. Deere & Co (DE): 5.2%
  8. Palantir Technologies (PLTR): 4.5%
  9. Trimble Inc (TRMB): 4.2%
  10. Advanced Micro Devices (AMD): 4.1%

Only two companies make both lists: Rocket Lab and Trimble. That's it.

The Ark fund loads up on defense contractors like L3Harris and Kratos, includes eVTOL manufacturer Archer Aviation in its top holdings, and even holds Deere & Co. Yes, the tractor company. Deere does have some satellite technology applications, but it's hardly what you'd call a space company in the traditional sense. It's a perfect example of a firm with exposure to the space sector but not deriving the majority of its revenue from it.

Why It Matters

For Procure, ensuring that most holdings generate the majority of their revenue from space is the defining advantage. It's not just about having space exposure. It's about being a space company, full stop.

As interest in the space economy continues to grow and speculation builds around a potential SpaceX IPO, investors looking for authentic exposure to the sector have a choice to make. Do they want a concentrated bet on companies living and dying by their space operations, or a broader portfolio that touches space along with defense, agriculture technology, and urban air mobility?

Neither approach is inherently wrong. They're just different strategies for different investors. But Chanin's message is clear: If you want pure space, there's only one place to look.

Back to Stock Market News

The Space ETF Showdown: Why One Fund Claims It's the Only Real Deal

MarketDash Editorial Team
3 hours ago
When it comes to investing in space, not all ETFs are created equal. The Procure Space ETF says it's the only pure-play bet on companies actually making money from space, while competitors like Ark's ARKX take a much broader approach that includes defense contractors and flying taxis.

If you want to invest in space, you've got options. But according to Andrew Chanin, CEO of Procure Holdings, only one of those options is the real deal.

Since its 2019 launch, the Procure Space ETF (UFO) has staked its reputation on being America's only pure-play space ETF. That means it holds companies with genuine, revenue-generating exposure to the space industry, not just firms that happen to use satellites or have a tangential connection to the sector. With a potential SpaceX IPO possibly materializing in 2026, that distinction could matter more than ever.

Chanin told MarketDash that maintaining this pure-play focus isn't just marketing talk. It's the entire point of the fund.

The Pure-Play Philosophy

"To my knowledge, UFO is the only pure play space ETF out there in the United States," Chanin said. "That's important to us because it has to be, our fund is called the Procure Space ETF. We have the trademark space ETF."

Here's what that actually means: Around 80% of the companies in UFO's index derive the majority of their revenue from space-related businesses, activities, and services. Not some revenue. Not a little revenue. The majority.

"It's taking into account companies that are actually doing space. They're actually making money from space. They're actually a space company," Chanin explained.

Sure, you could argue that almost any public company has some connection to space if you squint hard enough. But investors who want true exposure to the space economy probably want something more direct than a company that happens to use GPS in its delivery trucks.

"Someone that wants to invest in space probably wants to invest in actual space companies," Chanin said. "Anyone can be cute and try to throw in a company and make and argument for why it's space but that doesn't make it space."

Enter the Competition

The Ark Space & Defense Innovation ETF (ARKX), which launched in 2021, takes a decidedly different approach. Cathie Wood's Ark Invest fund casts a wider net, including companies with lower direct exposure to space and stronger ties to adjacent sectors like eVTOLs and defense.

The difference becomes crystal clear when you look at what these funds actually hold.

Tale of Two Portfolios

The top 10 holdings of the Procure Space ETF tell a story of satellite operators, launch providers, and space infrastructure companies:

  1. Rocket Lab Corporation (RKLB): 5.3% of assets
  2. Planet Labs (PL): 5.3%
  3. EchoStar Corporation (SATS): 4.8%
  4. Garmin Ltd (GRMN): 4.7%
  5. Trimble Inc (TRMB): 4.6%
  6. SES SA: 4.5%
  7. Sirius XM Holdings (SIRI): 4.5%
  8. MDA Space Ltd: 4.4%
  9. Viasat Inc (VSAT): 4.4%
  10. Globalstar Inc (GSAT): 4.1%

Now compare that with Ark's top 10:

  1. Rocket Lab (RKLB): 8.9% of assets
  2. L3Harris Technologies (LHX): 8.3%
  3. Kratos Defense & Security (KTOS): 7.8%
  4. Teradyne Inc (TER): 7.3%
  5. Aerovironment Inc (AVAV): 6.8%
  6. Archer Aviation (ACHR): 5.2%
  7. Deere & Co (DE): 5.2%
  8. Palantir Technologies (PLTR): 4.5%
  9. Trimble Inc (TRMB): 4.2%
  10. Advanced Micro Devices (AMD): 4.1%

Only two companies make both lists: Rocket Lab and Trimble. That's it.

The Ark fund loads up on defense contractors like L3Harris and Kratos, includes eVTOL manufacturer Archer Aviation in its top holdings, and even holds Deere & Co. Yes, the tractor company. Deere does have some satellite technology applications, but it's hardly what you'd call a space company in the traditional sense. It's a perfect example of a firm with exposure to the space sector but not deriving the majority of its revenue from it.

Why It Matters

For Procure, ensuring that most holdings generate the majority of their revenue from space is the defining advantage. It's not just about having space exposure. It's about being a space company, full stop.

As interest in the space economy continues to grow and speculation builds around a potential SpaceX IPO, investors looking for authentic exposure to the sector have a choice to make. Do they want a concentrated bet on companies living and dying by their space operations, or a broader portfolio that touches space along with defense, agriculture technology, and urban air mobility?

Neither approach is inherently wrong. They're just different strategies for different investors. But Chanin's message is clear: If you want pure space, there's only one place to look.