Since launching in 2019, the PROCURE ETF TRUST II SPACE ETF(UFO.US) has positioned itself as the only pure‑play space ETF in the United States, holding a basket of companies with direct exposure to the space industry — a sector that could draw increased attention in 2026 if a potential SpaceX IPO materializes.

The PROCURE ETF TRUST II SPACE ETF(UFO.US) holds just under 50 stocks of companies operating parts of their business—or otherwise reliant on activity—in space. The list includes makers of spacecraft and satellites as well as those in the imagery, intelligence, telecommunications, and defense industries, among others.

Despite its niche focus and relatively small asset base of just $160 million, UFO has soared in the last year thanks to prominent government contracts, lower launch costs across multiple industries, and a broad increase in commercial applications for satellite technology. The result is that UFO has surged by 17% in just a month and more than 68.7% year-to-date (YTD).

If space stocks continue to outperform, UFO is well-positioned to keep benefiting in 2026.

According to Benzinga, Procure Holdings CEO Andrew Chanin told that maintaining a pure‑play focus is central to the firm's identity and a key differentiator from other space‑themed ETFs.

UFO Vs. ARKX

The ARK Space Exploration & Innovation ETF(ARKX.US) launched in 2021, takes a broader approach. Unlike the Procure Space ETF, the fund from Cathie Wood's Ark Invest includes companies with lower direct exposure to space and, in some cases, stronger ties to adjacent sectors such as eVTOLs and defense.

"To my knowledge, UFO is the only pure play space ETF out there in the United States," Chanin told Benzinga. "That's important to us because it has to be, our fund is called the Procure Space ETF. We have the trademark space ETF."

According to Chanin, some 80% of the companies in the index tracked by UFO derive the majority of their revenue from space‑related businesses, activities, and services.

"It's taking into account companies that are actually doing space. They're actually making money from space. They're actually a space company."

Chanin acknowledged that one could make a broad argument that nearly any public company has some connection to space, but said investors seeking true pure‑play exposure want something more direct.

"Someone that wants to invest in space probably wants to invest in actual space companies."

For Procure, ensuring that most holdings generate the majority of their revenue from space is a defining advantage.

"Anyone can be cute and try to throw in a company and make and argument for why it's space but that doesn't make it space.”

Top Holdings

A look at the top holdings of the Procure Space ETF and the Ark Space & Defense Innovation ETFs could show some of the key differences and the focus on pure-play space companies by the older Procure fund.

Here are the top 10 holdings of the Procure Space ETF:

1. Rocket Lab(RKLB.US): 5.3% of assets
2. Planet Labs PBC(PL.US): 5.3%
3. ECHOSTAR CORPORATION(SATSV.US): 4.8%
4. Garmin Ltd.(GRMN.US): 4.7%
5. Trimble Inc.(TRMB.US): 4.6%
6. SES SA(SGBAF.US) : 4.5%
7. Sirius XM Holdings Inc.(SIRI.US): 4.5%
8. MDA Space Ltd: 4.4%
9. ViaSat, Inc.(VSAT.US): 4.4%
10. Globalstar, Inc.(GSAT.US): 4.1%

Here are the top 10 holdings of the Ark Space & Defense Innovation ETF:

1. Rocket Lab(RKLB.US): 8.9% of assets
2. L3Harris Technologies Inc(LHX.US): 8.3%
3. Kratos Defense & Security Solutions, Inc.(KTOS.US): 7.8%
4. Teradyne, Inc.(TER.US): 7.3%
5. AeroVironment, Inc.(AVAV.US): 6.8%
6. Archer Aviation(ACHR.US): 5.2%
7. Deere & Company(DE.US): 5.2%
8. Palantir Technologies Inc. Class A(PLTR.US): 4.5%
9. Trimble Inc.(TRMB.US): 4.2%
10. Advanced Micro Devices, Inc.(AMD.US): 4.1%

The only stocks in the top 10 of both ETFs are Rocket Lab and Trimble. A look at the newer Ark fund shows more exposure to defense names like L3Harris and Kratos and also includes eVTOL company Archer in the top 10 holdings. Deere, which has some satellite technology, is also a top 10 holding and could be an example of a company with exposure to the space sector, but not a majority of revenue coming from the segment.