While some investment themes have struggled to maintain their trajectory, the space economy has proven it has the fundamental fuel to reach escape velocity. This momentum is being met with a strategic modernization of the underlying infrastructure for UFO.
Thematic Investing is Not Static
VettaFi announced today that effective May 15, the S-Network Space Index—the benchmark for the Procure Space ETF (UFO)—will be rebranded as the VettaFi Space Index. This update also includes a “fast-track” methodology designed to bypass traditional seasoning periods for newly public industry leaders. By allowing for the immediate, day-one inclusion of mega-cap IPOs, the index will be structured to capture the full valuation cycle of transformative companies. Specifically, this update paves the way for a potential SpaceX addition in mid-2026, which current market projections estimate could debut with a valuation exceeding $1.5 trillion.
“The space industry is no longer just about ‘what if’—it is about ‘what is happening now,’” explained Jane Edmondson, Head of Index Product Strategy at VettaFi. “By fast-tracking the inclusion of dominant forces like SpaceX, we are ensuring that the VettaFi Space Index accurately reflects the leaders of the orbital economy, providing a more precise benchmark for the next generation of space innovation.”
Surpassing the $500 Million Milestone
The methodology shift arrives as UFO has emerged as a standout among thematic peers. The seven year old fund has more than tripled in size this year, recently crossing the $500 million asset milestone. The ETF’s performance has remained robust; while broader market indices have seen a choppy start to the year, UFO gained 35% year-to-date through April 15. UFO has strong record, with 14% annualized total return over the last five years. In this time, it has seen the emergence of new thematic peers.
UFO Top Holdings
Strategic Evolution: The SpaceX Impact
The introduction of the “fast-track” rule is a significant shift for the index’s concentration profile. Under the current modified market-cap weighting, the portfolio is diversified across approximately 50 constituents. However, the inclusion of a mega-cap leader like SpaceX would fundamentally redistribute these weights.
SpaceX’s projected scale is driven by its Starlink satellite broadband revenue. It would likely enter the VettaFi index as a dominant top-tier holding. This would transition UFO from a basket of predominantly mid-cap innovators into a more barbell portfolio. UFO would likely be anchored by a trillion-dollar industry leader. Meanwhile, it maintains exposure to high-growth specialists in Earth observation and deep-space logistics.
Commitment to Thematic Purity in UFO
According to Edmondson, by refining filters to ensure companies derive significant revenue or strategic value from space-based activities, VettaFi is doubling down on thematic purity. UFO’s crossing the half-billion-dollar mark was a key milestone. However, the updated methodology ensures the fund stays as dynamic as the industry it tracks. The ETF’s index approach provides benefits of transparency and agility required to lead the next phase of the space race.
UFO is one of many thematic ETFs to track a VettaFi index. The ALPS Medical Breakthroughs ETF (SBIO), the Range Nuclear Renaissance ETF (NUKZ), and the ROBO Global Robotics & Automation ETF (ROBO) are other examples of how VettaFi’s rules-based index approach is helping investors navigate complex, high-growth themes.
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VettaFi LLC (“VettaFi”) is the index provider for NUKZ, ROBO, SBIO, UFO, which receives an index licensing fee. However, NUKZ, ROBO, SBIO, UFO are 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 NUKZ, ROBO, SBIO, UFO.