Space ETF Adds 8 New Companies Including 7 That Completed SPAC Mergers: What Investors Should Know

By Benzinga
Benzinga
Benzinga
December 22, 2021 Updated: December 22, 2021

A pure-play space ETF offering investors exposure to growth in the sector announced its semi-annual rebalancing and reconstitution. The news brings eight new companies to the ETF, including seven that went public via SPAC merger.

What Happened

The Procure Space ETF announced the addition of eight new names to the space-themed ETF.

The new companies added to the fund are:

Arqit Quantum

Cybersecurity company Arqit Quantum Inc. plans to supply encryption services against cyber threats. The company uses satellites connected to secure networked devices on Earth.

Astra Space

A SPAC deal in February made Astra Space Inc. the first publicly-listed space launch company. Astra designs and manufactures launch vehicles. The company reached commercial orbit in November, becoming one of only four privately-funded companies to reach orbit. The company also reached orbit faster than rival SpaceX.

BlackSky Technology

Satellite company BlackSky Technology Inc. uses artificial intelligence and machine learning on its satellites for Earth observation.

Momentus

Space company Momentus Inc. is seeking to be a last-mile delivery provider for space. The company operates in transportation, satellites, and orbit services for space partners.

Mynaric

Laser-based communication company Mynaric ADS went public in November with a traditional IPO. The company helps provide long-distance transmission between moving objects.

Redwire

Space infrastructure company Redwire Corp. has more than 50 years of experience in space flights and over 150 missions flown. The company’s services enable nearly every space mission including every U.S. mission to Mars, missions to Pluto, and landing on multiple asteroids. The company also operates in the 3D printing market, printing tools in space.

Rocket Lab

Space launch company Rocket Lab is the second most frequently used U.S. orbital rocket company, trailing only SpaceX. The company has completed launches to space and helped partners deploy satellites.

Spire Global

Satellite company Spire Global Inc. uses data and analytics to provide advanced tracking for sectors including maritime, aviation, and weather services.

Why It’s Important

All eight added companies went public within the last six months. Mynaric went public via traditional IPO and the other seven completed SPAC mergers.

The Procure Space ETF waits to add companies to the ETF until they have completed their SPAC mergers.

“The surge in space-related companies going public signifies that investors are ready to take the space economy seriously,” ProcureAM CEO and co-Founder Andrew Chanin said.

The Procure Space ETF launched in April 2019 and has generated more than $100 million in assets under management.

“We’re thrilled that as the space economy grows and evolves, we can continue to expand UFO’s pure-play exposure to the most cutting-edge technologies across the space sector.”

The UFO ETF is up 4 percent year-to-date and has risen 11 percent since its inception.

A rival space ETF was launched by Ark Invest in March 2021. The Ark Space Exploration & Innovation ETF is an actively managed ETF focused on space-related companies. ARKX is down 2.2 percent since its inception. ARKX has nearly $500 million in assets under management.

Disclosure: Author is long shares RDW and RKLB

By Chris Katje 

© 2021 The Epoch Times. The Epoch Times does not provide investment advice. All rights reserved.


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