The multi-trillion-dollar space economy hit warp speed after the highly anticipated public debut of SpaceX (SPCX) on the Nasdaq last week. In a move that highlights the shifting dynamics of passive thematic investing, the Procure Space ETF (UFO ) added a stake in the commercial aerospace pioneer (6.17% as of June 17, 2026), which makes it the top holding.
Key Takeaways:
- The Procure Space ETF (UFO) has added SpaceX as its top holding at 6.17% of the fund following the aerospace giant’s highly anticipated public debut on the Nasdaq.
- A major structural indexing overhaul rebranded UFO’s benchmark to the VettaFi Space Index (SPACE), introducing a “Fast-Track” rule that bypasses traditional 22-day waiting periods for instant IPO exposure.
- The updated index methodology includes a “Mega-Cap Classification” for pure-play space leaders valued over $100 billion, allowing UFO to aggressively scale its SpaceX position up to a 15% maximum cap.
The Fast-Track Launch
The addition of SpaceX comes following a major indexing overhaul. On May 15, the S-Network Space Index that UFO tracked officially rebranded as the VettaFi Space Index (SPACE). Along with the name change also came structural methodology updates designed to capture industry leaders moving from private to public markets. Now tracking this newly optimized index, UFO is able to bypass traditional waiting periods and offer investors instant exposure to the space sector’s premier name. The fund is already over $1 billion in assets under management (AUM) with over $800 million in net flows this year (through June 12).
Under the previous 2019 rule, passive thematic indexes required newly listed public companies to trade for 22 consecutive days or during scheduled reconstitutions before becoming eligible for inclusion. However, the VettaFi Space Index’s new Fast-Track Inclusion rule allows pure-play space companies to gain immediate eligibility if they meet the market capitalization threshold. With the SpaceX IPO receiving record fanfare prior to its listing, the rule couldn’t come at a better time.
“The SpaceX IPO is one of the most anticipated offerings in my lifetime,” said Todd Rosenbluth, head of research at VettaFi. “It has made the space economy one of the hottest investment themes of 2026 and is likely to persist for years to come.”
See more: VIDEO: ETF of the Week: UFO
Reaching for the 15% Cap
While the allocation currently sits at 6.17%, the new rule allows the fund to scale aggressively. Under the aforementioned legacy rules, standard pure-play companies within the index were subject to a rigid 4.8% individual holding cap. The updated guidelines include a “Mega-Cap Classification” for pure-play industry leaders with a float market capitalization above $100 billion.
The updated classification rule allows for a single stock allocation of up to 15% of the total index weight. This means that UFO could expand its initial allocation to reach the 15% ceiling. Since initial IPO structures typically limit public share volume, the fund’s exposure is positioned to scale upward alongside SpaceX’s growing free-float market capitalization.
A New Standard for Thematic Tech
In the meantime, the space sector continues to move at a feverish pace. The industry is experiencing a surge in high-stakes capital raises, mergers, and massive satellite contract agreements. Through dynamic rebalancing and refined pure-play filtering, UFO ensures that its capital stays connected to firms that derive the majority of their revenue from launch services, satellite communications, and deep-space exploration.
“A rules based thematic approach offering space economic exposure can add value to client portfolios,” Rosenbluth said.
SpaceX itself continues to garner the most attention, surpassing Amazon in market value and briefly Microsoft in just its third day of trading. It may be the new star player in its portfolio, but SpaceX isn’t the only name in UFO’s portfolio. The fund also boasts a deep roster of companies like EchoStar Corp, Rocket Lab Corp, Trimble, and AST SpaceMobile – all poised for upside in this burgeoning space ecosystem.
By providing exposure to SpaceX and other major players, UFO cements its role as a premier vehicle for interstellar innovation. Moreover, it supports the notion that passive indexing can keep pace with real-time developments in the capital markets.
“For a decade, investors have asked us how to get SpaceX exposure through a public vehicle,” said Andrew Chanin, co-founder and CEO of ProcureAM. “UFO is now that vehicle, with the transparency and daily liquidity of an ETF.”
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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.
