The Procure Space ETF (UFO) has entered 2026 with significant momentum as investor enthusiasm around the commercialization of space continues to build.
See More: Space ETFs vs. Aerospace & Defense ETFs: View From Above
After delivering a gain of more than 100% over the past 12 months — more than triple the return of the S&P 500 over the same period — the fund reached a multi-year high of $48.66 in late January. UFO has since experienced a modest technical pullback in early March. However, the ETF is still trading near $45 and remains in positive territory for the year.
According to YCharts data as of March 16, the fund is up 15.5% year-to-date. That outpaces both the broader market and its primary thematic rival, the ARK Space Exploration & Innovation ETF (ARKX), which has gained roughly 6.07% over the same period. Over the last month UFO has risen 2.53% while ARKX has declined 2.04%.
SpaceX IPO Speculation Fuels Proxy Rally
One of the key catalysts behind UFO’s recent performance has been renewed speculation surrounding a potential IPO of Space Exploration Technologies Corp. (SpaceX). Reports suggest the private launch company could pursue a public listing as early as June 2026.
Because SpaceX remains private, investors seeking exposure to the company’s ecosystem have increasingly turned to publicly traded “proxy” names involved in launch services, satellite infrastructure, and space-based data. Many of those companies are core holdings within the UFO portfolio.
In particular, stocks such as MDA Space (MDA) have benefited from the renewed investor attention. The Canadian company represents roughly 5.99% of the fund and currently stands as its largest position. Known historically for building the Canadarm robotics used aboard the International Space Station, MDA’s current growth story centers on major contracts tied to the Canadarm3 system destined for the Lunar Gateway and its next-generation CHORUS Earth-observation satellite constellation.
Other Top Holdings Driving the 2026 Surge
Accounting for about 5.95% of the portfolio, Planet Labs PBC (PL) operates the world’s largest fleet of Earth-imaging satellites. This year the company has seen a surge in valuation as it transitions from a traditional satellite imagery provider into what it describes as an “AI data” company. This high-revisit capability creates a unique moat, as AI requires constant, real-time data to remain accurate.
At approximately 5.06% of the ETF, Viasat, Inc. (VSAT) represents a key player in satellite communications infrastructure. After facing technical setbacks in prior years, the company’s 2026 recovery has been supported by the continued expansion of its global broadband network and its growing role in secure communications for government and defense customers.
Garmin Ltd. (GRMN) holds roughly 4.66% of the fund and often acts as a stabilizing component within the portfolio. While widely known for consumer GPS wearables, Garmin remains a dominant provider of navigation systems for aviation and marine applications. This gives UFO exposure to a profitable large-cap technology company with strong space-based infrastructure ties.
Rounding out the top five at about 4.48%, Rocket Lab USA (RKLB) is the ETF’s most prominent pure-play launch provider. The high success rate of its Electron rocket as well as rapid progress on Neutron, the company’s larger reusable launch vehicle, have driven its performance in March.
The Pure-Play Advantage
Broader aerospace ETFs allocate large portions of their portfolios to legacy defense contractors. In contrast, UFO takes a more targeted approach. The fund focuses primarily on companies driving the commercialization of space. Those range from launch providers and satellite manufacturers to geospatial data platforms. With speculation surrounding a potential SpaceX IPO intensifying and several publicly traded launch and satellite companies gaining traction, UFO’s early-year outperformance suggests that the space sector remains firmly on investors’ radar in 2026.
Originally published on ETF Trends
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VettaFi LLC (“VettaFi”) is the index provider for UFO, which it receives an index licensing fee. However, UFO is not issued, sponsored, endorsed or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of UFO.
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