Satellite Operators, Hardware Pioneers Keep UFO ETF In Orbit

The Procure Space ETF (UFO ) continues to demonstrate space sector resilience. Despite a 2.8% dip in September, the fund was propelled by select performers across its Media & Communications and Technology holdings. This includes satellite operators and hardware pioneers contributing to the space economy’s growth. UFO is up about 9% year to date and over 16% across the trailing 12 months.Key Takeaways: UFO demonstrated sector resilience in September, rising about 9% year to date and over 16% across the trailing 12 months despite a minor 2.8% monthly dip. Monthly performance was anchored by select names in Media & Communications as well as Technology. Additional contributions from satellite observation, embedded computing, and in-orbit servicing firms highlight how specialized pure-play space holdings can generate alpha for UFO. See More: SpaceX Allocation More Than Doubles in UFO ETFMedia & Technology LeadersJapanese satellite giant Sky Perfect JSAT Corp. (9412.T), delivered a robust 181.7% return in September, serving as the single largest positive contributor (+2.32%) to UFO’s overall performance. The company’s surging valuation reflects consistent demand across its commercial satellite fleet and satellite communications infrastructure, solidifying its position as a primary driver within the Media & Communications sector. Additionally, high-precision timing technology provider Frequency Electronics Inc. (FEIM) gained 40.3% in September following a landmark fiscal first-quarter earnings report. Driven by a 70% year-over-year revenue surge to $23.5 million and a record funded backlog of $129 million across commercial space and defense programs, Frequency Electronics added +0.11% in sector contribution.Industrials & Space Infrastructure ContributorsAdding to UFO’s September performance was the industrial automation and embedded computing provider Contec Co.(451760.KQ), which gained 14.48%. As space-based data processing and ground system automation expand, Contec’s specialized hardware solutions contributed positively to the fund’s Industrials allocation. Satellogic (SATL), a leader in high-resolution Earth observation gained 13.55% last month. The company is benefiting from increasing commercial and government demand for real-time geospatial intelligence. Furthermore, the company’s expanding satellite constellation continues to drive operational momentum within sub-orbital and low-Earth orbit analytics. Astroscale Holdings (186A.T), in-orbit servicing and space debris removal innovator, rounded out the top five performers with a 13.20% gain. The company’s rising valuation highlights growing institutional commitment to sustainable space operations and satellite life-extension technologies.Efficient Pure-Play ExposureDespite headwinds among legacy aerospace defense primes, UFO’s specialized holdings in satellite communications, quantum timing, and orbital logistics demonstrate how dynamic pure-play space equities can unlock significant alpha across global equity markets. For investors seeking a specialized thematic allocation, UFO provides efficient exposure to the growing space economy. When looking at the long-term investment horizon of the space economy, prospective investors may ask fundamental questions. What are the macro drivers propelling the industry? Is the space sector a short-term theme built on hype or a long-term secular trend? These questions will be answered in an upcoming webinar: Why You Should Make Room for Space in Your Portfolio. Andrew Chanin, CEO of Procure ETFs, will also discuss the investable opportunity in the UFO ETF. For more news, information, and analysis, visit the Thematic Investing Content Hub. VettaFi LLC (“VettaFi”) is the index provider for UFO, for which it receives an index licensing fee. However, UFO is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of UFO.