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.
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Despite ongoing market uncertainty stemming from geopolitical friction and higher-for-longer interest rates, UFO is up over 20% for the year. Investors looking to bolster exposure within the thematic sleeve of their portfolios may want to give UFO strong consideration.
Key Takeaways
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Despite broader market volatility and a shift toward safe-haven assets, UFO has surged over 20% year-to-date, driven by a transition from speculative interest to mission-critical defense and infrastructure demand.
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The space sector produced extraordinary individual performances in March, led by Satellogic’s 81% gain and supported by key index drivers like Firefly Aerospace, which returned over 47%.
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Space Exploration ETFs captured $86 million in March, contributing to a nearly 60% increase in category AUM so far in 2026.
Top Five Performers
Thus far this year, the space industry has experienced a significant growth inflection. The industry has gone from speculative investment interest to strategic, defense-oriented demand. Amid geopolitical conflict, the industry is seeing record government and defense spending for satellite-based intelligence (ISR) and secure communications.
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According to March 2026 monthly return data, the space sector produced impressive individual stock performances. Here were the five performers within the UFO index (the S-Network Space Index):
- Satellogic Inc. (SATL): Leading the pack with a staggering 81.33% monthly return, this geospatial data leader benefited from heightened demand for high-resolution satellite imagery. It’s also worth mentioning that the stock has gone parabolic this year, rising over 270%.
- Firefly Aerospace Inc. (FLY): Returning 47.74% for the month of March, Firefly is a significant driver for UFO with its 3.7% index weight. Firefly’s March performance highlights growing demand for nimble, cost-effective launch providers.
- Spire Global Inc. (SPIR): With a 42.15% gain, Spire Global’s satellite-based data services serve as vital tools for maritime and weather monitoring.
- BlackSky Technology Inc. (BKSY): As a provider of real-time tactical intelligence, BlackSky returned 33.47%, due in part to the expansion of government contracts for imagery services.
- Sidus Space Inc. (SIDU): Rounding out the top five performers for March with an 18.97% return was Sidus. The space company’s performance demonstrated increased market demand for “Space-as-a-Service” platforms.
Thematic Resurgence
While the broader investor sentiment signaled risk off during March, inflows into thematic ETFs were quietly having their best start since 2021. Flash flows data from State Street Investment Management (SSIM) revealed that thematic funds attracted nearly $1 billion in March alone, bringing the year-to-date total to $6 billion.
Space exploration ETFs, in particular, captured $86 million in new assets during March. This contributed to the $437 million in year-to-date inflows, which has helped propel the category’s AUM to nearly 60% in 2026 alone.
This increased investor interest in specialized, future-facing themes may be signaling that investors are looking for growth opportunities beyond artificial intelligence (AI) exposure, which is seemingly everywhere. As investors move beyond this standard growth benchmark of AI in search for alpha, the space industry’s focus on telecommunications, defense, and climate monitoring makes it primed for additional growth. This bodes well for UFO, which can capture that sector exposure in the convenience of one ETF.
In a market with more questions than answers, the space economy offers a unique value proposition. While broader markets remain cautious as volatility ensues, the space sector’s alignment with national security and infrastructure make it a compelling option for thematic exposure for the rest of 2026.
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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.
