Aerospace firm Rocket Labs (RKLB) rocketed up 34% on Friday, notching its best day ever. The firm’s massive burst in performance follows its report of strong earnings numbers, topping Q1 revenue estimates. It also announced its largest ever deal, securing a $190 million pact with the U.S. Department of War. That has proven to be good news for the space ETF UFO, which holds a notable weight towards the firm.
Key Takeaways:
- Massive performance by RKLB over the last week highlights the burgeoning aerospace and defense segment.
- Space ETF UFO holds a notable exposure to that stock and other key names in the space.
- Together, that could make the space ETF an appealing offering for those looking at the category.
The Procure Space ETF (UFO ) has a 4.8% weight towards RKLB, according to ETF Database data. The strategy charges a 75 basis point fee to track the S-Network Space Index, investing in global aerospace and defense firms.
Specifically, that includes satellite-based products and services, space hardware, ground equipment, rocket and satellite manufacturing, and more. The fund breaks down its investments in tranches based on their level of revenue from those types of firms.
UFO spiked notably amid Friday’s news, up 7.37% in the last five days according to YCharts data. The fund had already been offering robust performance even before that, however. The space ETF has returned 41% YTD and a remarkable 136% over the last 12 months, according to ETF Database data. Finally, in that last month it has returned 10.3%. Across all of those time frames, the space ETF has outperformed the ETF Database Global Equities category average.
RKLB, meanwhile, has exploded in the last year. Both geopolitics and technological advancements have contributed to the demand for space companies. Whether amid the advancement of drones and rocketry or growing volatility demanding more military spending, the category offers plenty of opportunity.
UFO has also seen its price rise above both its 50- and 200-day simple moving averages. That traditionally indicates healthy momentum and a potential buy opportunity. For those looking at strong tech options outside of the main AI names, UFO may appeal.
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VettaFi LLC (“VettaFi”) is the index provider for , 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.
