Space ETF Adds 8 New Companies Including 7 That Completed SPAC Mergers: What Investors Should Know

A pure-play space ETF offering investors exposure to growth in the sector announced its semi-annual rebalancing and reconstitution. The news brings eight new companies to the ETF, including seven that went public via SPAC merger.

What Happened: The Procure Space ETF UFO announced the addition of eight new names to the space-themed ETF. 

The new companies added to the fund are:

Arqit Quantum: Cybersecurity company Arqit Quantum Inc ARQQ plans to supply encryption services against cyber threats. The company uses satellites connected to secure networked devices on Earth.

Astra Space: A SPAC deal in February made Astra Space Inc ASTR the first publicly-listed space launch company. Astra designs and manufactures launch vehicles. The company reached commercial orbit in November, becoming one of only four privately-funded companies to reach orbit. The company also reached orbit faster than rival SpaceX.

BlackSky Technology: Satellite company BlackSky Technology Inc BKSY uses artificial intelligence and machine learning on its satellites for Earth observation.

Momentus: Space company Momentus Inc MNTS is seeking to be a last-mile delivery provider for space. The company operates in transportation, satellites and orbit services for space partners.

Mynaric: Laser-based communication company Mynaric ADS MYNA went public in November with a traditional IPO. The company helps provide long-distance transmission between moving objects.

Redwire: Space infrastructure company Redwire Corp RDW has more than 50 years of experience in space flights and over 150 missions flown. The company’s services enable nearly every space mission including every U.S. mission to Mars, missions to Pluto and landing on multiple asteroids. The company also operates in the 3D printing market, printing tools in space.

Rocket Lab: Space launch company Rocket Lab RKLB is the second most frequently used U.S. orbital rocket company, trailing only SpaceX. The company has completed launches to space and helped partners deploy satellites.

Spire Global: Satellite company Spire Global Inc SPIR uses data and analytics to provide advanced tracking for sectors including maritime, aviation and weather services.

Related Link: Exclusive: UFO CEO Andrew Chanin On Being A Pure Play Space ETF Vs. The New Ark Fund 

Why It’s Important: All eight added companies went public within the last six months. Mynaric went public via traditional IPO and the other seven completed SPAC mergers.

The Procure Space ETF waits to add companies to the ETF until they have completed their SPAC mergers.

“The surge in space-related companies going public signifies that investors are ready to take the space economy seriously,” ProcureAM CEO and co-Founder Andrew Chanin said.

The Procure Space ETF launched in April 2019 and has generated more than $100 million in assets under management.

“We’re thrilled that as the space economy grows and evolves, we can continue to expand UFO’s pure-play exposure to the most cutting-edge technologies across the space sector.”

The UFO ETF is up 4% year-to-date and has risen 11% since its inception.

A rival space ETF was launched by Ark Invest in March 2021. The Ark Space Exploration & Innovation ETF ARKX is an actively managed ETF focused on space-related companies. ARKX is down 2.2% since its inception. ARKX has nearly $500 million in assets under management.

Disclosure: Author is long shares RDW and RKLB

Photo by Niketh Vellanki on Unsplash