Is UFO (ETF) on Your Radar?
Something is happening in the sky, but no one is sure what it is. Initial reports indicated that China was sending weather balloons to gather meteorological data. Next, the United States declared the balloons to be spy apparatuses intended to collect military information. Then came speculation whether the additional objects identified in the sky could be extraterrestrial devices!
Sophisticated military radar systems are essential to tracking these mysterious objects. Normally, radar is used to pick up fast moving, heat generating items that are usually associated with missiles or enemy aircraft. The most recent objects discovered are slower moving, cooler entities. As radar parameters are modified for increased sensitivity, more items are likely to be discovered.
The original objects were treated as possible enemy devices and were tracked and destroyed by fighter planes. A search and retrieval effort will hopefully reveal more about these objects. However, this can be costly as more objects are discovered. Radar and satellite data will be crucial to track and identify these unknown objects.
Along with radar, satellites will play a critical role in the observation of and communication regarding UFOs or, using governmental jargon, “unexplained anomalous phenomena” (UAPs). Satellites will be instrumental in further identifying and tracking the location of objects such as other satellites, debris, remote sensing equipment and other items.
The Procure Space ETF (UFO:NASDAQ) is an exchange-traded fund comprised of constituents involved in space-related industries. UFO incorporates radar and satellite companies within the fund:
According to Fortune Business Insights, the top five military radar manufacturers are Airbus S.A.S.*, Raytheon Technologies*, Northrop Grumman*, Saab AB*, and Thales Group*. In the United States, Lockheed Martin* is another major radar provider while General Dynamics* incorporates Leonardo* equipment for radar systems.
Satellite manufacturers, launch firms, and communications providers are important components of the Procure Space ETF. Astra Space*, AST SpaceMobile*, BlackSky*, Boeing*, Eutelsat*, Maxar Technology*, Planet Labs*, Trimble*, Viasat* are companies that are constituents in the fund.
No one can predict the future, but it is extremely likely that governments all over the world will be spending more time gazing at the sky and looking for more than twinkling stars.
As of February 13th, 2023, Airbus (AIR FP) was a 1.15% holding, Aeroejet Rocketdyne (AJRD) was a 0.26% holding, Astra (ASTR) was a 0.51% holding, AST SpaceMobile* (ASTS) was a 1.16% holding, BlackSky Technology (BKSY) was a 0.57% holding, Boeing (BA) was a 2.79% holding, Eutelsat (ETL FP) was a 4.50% holding, Leonardo (LDO IM) was a 0.08% holding, Lockheed Martin (LMT) was a 2.33% holding, Maxar (MAXR) was a 9.89% holding, Northrop Grumman (NOC) was a 2.02% holding, Planet Labs (PL) was a 4.02% holding, Raytheon Technologies (RTX) was a 2.37% holding, Rocket Lab (RKLB) was a 5.36% holding, Trimble (TRMB) was a 4.53% holding, Thales (HO FP) was a 0.24% holding, Viasat (VSAT) was a 4.82% holding in the Procure Space ETF (NASDAQ: UFO). The Procure Space ETF (NASDAQ: UFO) does not hold the following companies: General Dynamics (GD) and Saab AB (SAABF).
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.