The Procure Space ETF (UFO) has declined 19% since its May 28 peak, underperforming the Tema Space Innovators ETF (NASA) which fell 24% as investors reallocate cash ahead of SpaceX’s June 12 IPO. Unlike NASA, UFO holds no SpaceX exposure, with Rocket Lab and Viasat as its top positions.
The Procure Space ETF (UFO) peaked on May 28 and has since declined by 19%, mirroring a 24% drop in the Tema Space Innovators ETF (NASA). Planet Labs shares plunged 36% and Rocket Lab lost 24% during the same period as investors rebalance ahead of SpaceX’s Nasdaq debut.
UFO ETF holds no direct exposure to SpaceX, while NASA ETF gains SpaceX access through a special-purpose vehicle. Rocket Lab is the top holding in both ETFs; UFO’s second-largest position is in satellite provider Viasat, versus EchoStar for NASA ETF.
With the June 12 SpaceX IPO approaching, investors are reallocating cash into SpaceX shares, which could induce forced ETF selling and buying and create volatility. Post-IPO demand for SpaceX may reignite interest in space infrastructure stocks and ETFs if the debut is well received.
