By ProcureAM Research

Space stocks reached new heights in 2024. Companies, including AST SpaceMobile, Rocket Lab, Intuitive Machines, and Redwire, saw their share prices jump up, in some cases, over 400% by the end of the year!¹ 

Last year, there was a growing emphasis by communications providers to expand connectivity to all customers, especially those in rural areas. This meant new contracts for satellites to be built, launched, and managed. It also helped to push up the share price of AST Space Mobile. Rocket Lab grew based on successful launches and new contracts from NASA.¹

This year, there is great anticipation that the Trump-Musk connection will focus more attention on space for exploration and defense purposes. The appointment of Jared Isaacman to lead NASA has created additional excitement and expectation that space projects will be prioritized and well-managed. The focus on the international Space Race may also create increased emphasis on space in the United States.

Other factors that are expected to contribute to the growth in the space industry include²:

1. Lower launch costs.
2. Diversified investor groups including venture capitalists and public and private equity, in addition to governments and billionaires.
3. Commercial innovation. 
4. Global government recognition of the importance of space for security and autonomy. Governments are looking to secure communications networks on land and in space in order to protect against cybersecurity threats and physical attacks designed to destroy targets like satellites and other infrastructure.

While the space sector seems poised for success in 2025, it is difficult to time the market or to know which stock in any sector will lead the pack. Investors cannot predict when contracts for space companies will come in and when the firms will ultimately get paid for their services and products. This is especially true for firms that depend on government projects that may be dependent on federal funding. In addition, some contracts may be reliant on meeting designated benchmarks or on partners who must first complete their project responsibilities. 

A smart way to gain exposure to the space industry is by investing in a variety of related companies. Space exchange-traded funds provide access to a diversified portfolio of space-focused equities. The Procure Space ETF^® (NASDAQ:UFO) consists of over 30 space economy stocks. These firms include satellite, launch, defense, communications, tourism, and imagery companies. In 2024, the UFO ETF held many of the top space stock movers including: AST SpaceMobile*, Intuitive Machines*, Rocket Lab*, Redwire*, Spire Global*, and Planet*.³

The Procure Space ETF^® was designed to include all aspects of the space economy. UFO highlights companies building and launching rockets into outer space, providing imagery for use with military, weather, and transportation applications, offering space tourism experiences, managing and building satellites for communication networks, and using satellite technology to provide navigation, communications and entertainment. 

Even the experts cannot always accurately predict which companies will be winners at a given time. Investing in a diversified basket of space stocks will provide investors with exposure to many of the biggest names in this exciting industry. 

For more information on the Procure Space ETF^®, visit www.ProcureETFs.com.

¹”These are the Space Stocks to Watch in 2025,” James Rogers, marketwatch.com, January 4, 2025.

²“The Trillion Dollar Question,” Jason Rainbow, SpaceNews.com, April 18, 2024.

³“Tracking Cash Flow Through the 2024 Space Stocks Rally,” Jack Kuhr, payloadspace.com, December 11, 2024.

Important Information:

*As of January 16th, 2025, AST SpaceMobile (ASTS) was a 4.43% holding, Intuitive Machines (LUNR) was a 7.89% holding, Planet Labs (PL) was a 4.73% holding, Redwire Corporation (RDW) was a 2.34% holding, Rocket Lab (RKLB) was a 5.29% holding, Spire Global was a 1.75% 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 Funds 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.