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A Satellite Used to Be a Mirror. Now It Is a Router.
by ProcureAM Research
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| For most of the space age, a communications satellite worked like a mirror. A signal went up, bounced off, and came back down. Every connection needed a ground station nearby, so coverage came down to how many dishes a company could afford to build. |
| That is changing. Satellites in newer constellations link directly to one another in orbit and hand data from one spacecraft to the next. Information can cross an ocean without touching the ground in between. The satellite is no longer just a mirror. It works more like a router, and the group of satellites around it works like a network. |
| Why this is happening now |
| Three things came together. |
| Getting to orbit got easier. There were 325 orbital launches in 2025, about 25% more than the year before, according to BryceTech.1 More launches mean more satellites, and enough satellites in one system make a network rather than a handful of separate relays. |
| Satellites started talking to each other. Once spacecraft pass data between themselves, the system no longer needs a ground station within sight of every one of them. |
| The equipment got more ordinary. Satellite connections are increasingly built to work with standard commercial wireless hardware instead of specialty gear. |
| What it is being used for |
| Satellite communications used to be mainly one thing: selling capacity where ground networks did not reach. It now covers several distinct uses. |
● Phones. Some standard handsets can reach a satellite directly, with no extra hardware.
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● Home and business internet. Satellite broadband has reached consumer scale. SpaceX reported crossing 10 million broadband customers on its Starlink service in February 2026.2
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● Radio. Satellite radio sends the same audio across a whole country from orbit, rather than from local towers.
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● Planes, ships and trucks. Staying connected while moving.
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● Government and defense. A shift toward many small satellites rather than a few large ones.
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● The equipment behind all of it. Antennas, ground stations, and the parts that go into the satellites themselves.
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For a sense of scale, the global space economy reached $686 billion in 2025, up 12% on the year before.3
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| The real limit is rockets |
Every forecast in this industry is, underneath, a launch forecast. Satellites only do their job once they are in orbit, and access to orbit is shared, scheduled and easily disrupted. Delays to a single vehicle can move service timelines for several operators at once.
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That is the practical thing to watch in space-based communications: not how large the opportunity is described to be, but how many launches actually happen and how much hardware gets built.
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| Where the fund fits |
| The Procure Space ETF® (Nasdaq: UFO) is comprised of a portfolio of companies involved in various aspects of the space industry, including space-based communications. |
| Satellite operators and network owners include Sirius XM Holdings*, Viasat*, Space Exploration Technologies Corp*, EchoStar*, AST SpaceMobile*, Iridium Communications*, Globalstar*, SES*, Eutelsat Communications* and Telesat*. On the build-and-equip side, holdings include MDA Space*, Gilat Satellite Networks* and Intellian Technologies*. |
| To learn more about UFO, the Procure Space ETF®, visit: https://www.procureetfs.com/ufo |
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1 BryceTech, “Orbital Launches Year in Review 2025,” https://brycetech.com, April 2026
2 SpaceX, “Starlink,” https://www.spacex.com, February 2026. Figure refers to Starlink broadband customers, not Starlink direct-to-cell subscribers.
3 Space Foundation, “The State of the Global Space Economy,” https://www.spacefoundation.org, July 2026
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| Important Information |
| *As of September 3, 2026, Sirius XM Holdings Inc (SIRI) was a 5.91% holding, Viasat Inc (VSAT) was a 5.71% holding, Space Exploration Technologies Corp (SPCX) was a 5.01% holding, EchoStar Corp (ECHO) was a 4.36% holding, AST SpaceMobile Inc (ASTS) was a 4.34% holding, Iridium Communications Inc (IRDM) was a 3.67% holding, Globalstar Inc (GSAT) was a 3.62% holding, MDA Space Ltd (MDA) was a 3.02% holding, SES SA (SESG) was a 1.73% holding, Eutelsat Communications SACA (ETL) was a 1.01% holding, Gilat Satellite Networks Ltd (GILT) was a 0.55% holding, Telesat Corp (TSAT) was a 0.51% holding, Intellian Technologies Inc (189300) was a 0.30% holding in the Procure Space ETF® (NASDAQ: UFO). |
| For a complete list of holdings in UFO, visit: https://procureetfs.com/ufo/. Fund holdings and sector allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security. |
| Please consider the Fund’s investment objectives, risks, and charges and expenses carefully before you invest. This and other important information is contained in the Fund’s summary prospectus and prospectus, which can be obtained by visiting procureetfs.com. Read carefully before you invest. |
| Investing involves risk. Principal loss is possible. The Fund is also subject to the following risks: Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the funds. Brokerage commissions will reduce returns. |
| Aerospace and defense companies can be significantly affected by government aerospace and defense regulation and spending policies. The exploration of space by private industry and the harvesting of space assets is a business based in future and is witnessing new entrants into the market. Investments in the Fund will be riskier than traditional investments in established industry sectors. The Fund is considered to be concentrated in securities of companies that operate or utilize satellites which are subject to manufacturing delays, launch delays or failures, and operational and environmental risks that could limit their ability to utilize the satellites needed to deliver services to customers. Investing in foreign securities are volatile, harder to price, and less liquid than U.S. securities. Securities of small- and mid-capitalization companies may experience much more price volatility, greater spreads between their bid and ask prices and significantly lower trading volumes than securities issued by large, more established companies. The Fund is not actively managed so it would not take defensive positions in declining markets unless such positions are reflected in the underlying index. Please refer to the summary prospectus for a more detailed explanation of the Funds’ principal risks. It is not possible to invest in an index. |
| UFO is distributed by Quasar Distributors LLC. |
