Is the Procure Space ETF a Compelling Investment in the Growing Space Industry?

Are you considering investing in the Procure Space ETF? This article explores the performance and potential of this space-themed ETF that invests in companies within the rapidly growing space industry. With a focus on space-related industries, including rocket and satellite manufacturers, telecommunications, and space technology, the ETF aims to capture the opportunities presented by the evolving space sector. Let's dive into the details and assess whether the Procure Space ETF is a compelling investment choice.

Understanding the Procure Space ETF

Learn about the basics of the Procure Space ETF and its investment focus.

Is the Procure Space ETF a Compelling Investment in the Growing Space Industry? - -115957140

The Procure Space ETF (NASDAQ:UFO) is a space-themed ETF that offers investors exposure to the growing space industry. This ETF invests in a diversified portfolio of companies that derive a significant portion of their revenue from space-related industries.

With a focus on rocket and satellite manufacturers, satellite-based telecommunications, space technology, and more, the Procure Space ETF aims to capture the potential of the evolving space sector. By investing in this ETF, investors can gain access to a range of companies at the forefront of space exploration and innovation.

Examining the ETF's Performance

Analyze the historical performance of the Procure Space ETF and its recent trends.

Since its inception in 2019, the UFO ETF has experienced mixed performance. While it had a 7.2% gain in 2021, it faced a decline of 25.9% in 2022 and another 16.1% this year. These results, combined with the ETF's relatively high expense ratio of 0.75%, have raised concerns among investors.

It's important to note that past performance is not indicative of future results. Investors should carefully consider their investment goals and risk tolerance before investing in the Procure Space ETF.

Analyzing the ETF's Portfolio

Explore the composition of the Procure Space ETF's portfolio and its top holdings.

The Procure Space ETF holds a portfolio of 35 stocks, with its top 10 holdings accounting for nearly half of its assets. Some notable holdings include Sirius XM Holdings (NASDAQ:SIRI), Garmin (NYSE:GRMN), Boeing (NYSE:BA), Lockheed Martin (NYSE:LMT), Northrop Grumman (NYSE:NOC), and RTX Corporation (NYSE:RTX).

While some of these holdings are considered sensible choices, others have raised concerns due to their lack of profitability and poor performance. It's essential for investors to carefully evaluate the individual holdings and their potential for growth within the space industry.

Assessing the Investment Potential

Evaluate the investment potential of the Procure Space ETF and its outlook for the future.

Analysts currently have a Moderate Buy consensus rating for the UFO ETF, with an average price target of $22.38, suggesting a potential upside of 38.7%. However, it's important to exercise caution and consider the ETF's mixed portfolio and performance history.

While space is a promising long-term theme, investors should carefully evaluate their investment objectives and conduct thorough research before deciding whether the Procure Space ETF is a compelling investment option.

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