SpaceX’s IPO appears to be shifting markets around it, with numerous indexes adjusting their holdings and rules to accommodate its blockbuster debut. Strong performances from aerospace and drone companies have already lifted aerospace ETFs, such as UFO, this year. Now these ETFs are making changes to welcome the massive SpaceX IPO, positioning UFO as prime option for investors seeking exposure to the firm’s public market launch.
Key Takeaways:
- The SpaceX IPO is dominating the markets and headlines of an already jam-packed year.
- Thematic ETFs like UFO will see a major impact from the debut, already benefitting from top-performing aerospace names like SpaceX.
- UFO has produced solid, robust performance YTD and over the last 12 months.
SpaceX is projected to be the largest IPO on record in the United States at $86.5 billion in estimated raise. The firm’s sheer $2 trillion IPO may rock markets, but it’s also presenting opportunities that merit closer examination.
The Procure Space ETF (UFO ) charges a 75 basis point fee to track the Vettafi Space Index. With the index recently shifting to accommodate the SpaceX IPO, it has positioned UFO to build on its already robust first half of 2026. The strategy has returned 68.98% YTD and 46.86% over the last three months, according to ETF Database data. What’s more, the aerospace ETF has produced a remarkable 165% return over the last 12 months.
Consequently, UFO has outpaced its ETF Database Global Equities category average over nearly all time frames. On a YTD basis, for example, the category average came in just under 12% compared to the fund’s 69% YTD performance.
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The SpaceX IPO could lift UFO even further as the strategy takes a tier-weighted approach to its target stocks. Target stocks range from a variety of areas that include space hardware, space-based imagery and intelligence services, drones and more. With all factors combined, the strategy has grown to more than $1.2 billion in AUM.
With SpaceX representing a key name in aerospace and numerous index rules already accommodating its upcoming IPO debut, UFO’s proven performance and thematic focus makes it an ideal vehicle for targeted exposure to this historical IPO.
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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.
