Core Viewpoint - The Procure Space ETF (UFO) aims to provide investors with exposure to the space economy, expanding beyond traditional aerospace and defense sectors into areas such as defense technology and space exploration [1] Group 1: ETF Overview - The Procure Space ETF (UFO) is a thematic exchange-traded fund designed for investors interested in the space economy [1] - The ETF diversifies its investments beyond traditional aerospace and defense companies, including sectors like defense technology and space exploration pureplays [1] Group 2: Analyst Background - Michael Del Monte is a buy-side equity analyst with expertise in technology, energy, industrials, and materials sectors [1] - Prior to his role in investment management, Michael spent over a decade in professional services across various industries, including oil and gas, industrials, and consumer discretionary [1]

Market Performance - The Dow Jones Industrial Average rose 0.7% in December, marking its eighth consecutive winning month, the longest streak since 2018 [1] - The S&P 500 slipped about 0.06% for the month, while the Nasdaq Composite finished down about 1% [1] - The final five trading sessions of December were downbeat, with the Nasdaq losing 1.3%, the S&P 500 retreating 0.9%, and the Dow Jones falling 0.7% [2] Seasonal Trends - Historically, stocks tend to rise during the final five trading days of the year and the first two sessions of the new year, a pattern now under threat [3] S&P 500 Performance - The S&P 500 rallied 24% in 2023, 23% in 2024, and 16% in 2025, resulting in an almost 80% gain over three years, marking the strongest return over a three-year win streak since 2019-2021 [4] - The S&P 500 has not posted four consecutive annual gains since the five-year run from 2003 to 2007 [5] Economic Indicators - The Federal Reserve has issued hawkish guidance for 2026, with a cooling U.S. labor market and persistent inflation [5] - The net impact of Trump tariffs remains unclear, and developed-market central banks are unlikely to cut rates at the beginning of 2026 [5] Sector Performance - Cannabis ETFs saw significant gains, with AdvisorShares Pure US Cannabis ETF (MSOS) up 35.6% and Roundhill Cannabis ETF (WEED) up 35.5% due to potential easing of federal marijuana regulations [7][8] - Silver ETFs also performed well, with abrdn Physical Silver Shares ETF (SIVR) up 25.9% and iShares Silver Trust (SLV) up 25.8%, driven by supply tightness and industrial demand [7][9] - Platinum ETFs, such as abrdn Physical Platinum Shares ETF (PPLT), rose 22.2% due to supply constraints and increased industrial usage [10] - Space ETFs, including Procure Space ETF (UFO), increased by 16.2%, bolstered by Rocket Lab's stock surge and positive developments in the space economy [11] - Copper Mining ETFs, like Global X Copper Miners ETF (COPX), rose 14.3% as copper prices hit records due to high demand and fragile supply, particularly from AI data centers [12]

Core Insights - The Procure Space ETF (NASDAQ:UFO) is the only pure-play space ETF in the United States, focusing on companies with direct exposure to the space industry, which may gain attention in 2026 if a SpaceX IPO occurs [1][3] - Procure Holdings emphasizes its pure-play focus as a key differentiator from other space-themed ETFs, such as the Ark Space & Defense Innovation ETF (BATS:ARKX), which includes companies with lower direct exposure to space [2][3] Company Focus - Approximately 80% of the companies in the Procure Space ETF derive the majority of their revenue from space-related businesses, activities, and services, highlighting the fund's commitment to true space companies [3][4] - The Procure Space ETF aims to provide investors with direct exposure to companies that are actively generating revenue from space, distinguishing itself from broader funds that may include companies with only peripheral connections to the space sector [4][5] Comparison with Competitors - The Ark Space & Defense Innovation ETF includes companies with significant ties to adjacent sectors, such as defense and eVTOLs, which contrasts with the Procure Space ETF's focus on pure-play space companies [2][7] - Both ETFs share Rocket Lab and Trimble in their top 10 holdings, but the Ark fund has a greater emphasis on defense-related companies and other sectors, indicating a broader investment strategy [6][8] Top Holdings - The top 10 holdings of the Procure Space ETF are not detailed in the provided content, but the focus remains on companies that primarily operate within the space industry [5] - The Ark Space & Defense Innovation ETF's top holdings include Rocket Lab (8.9%), L3Harris Technologies (8.3%), and Kratos Defense & Security (7.8%), showcasing its diverse investment approach [6][8]

Core Insights - The high-beta trade has shown strong performance from mid-April through Q3, with the Procure Space ETF (NASDAQ: UFO) up 64% year-to-date, significantly outperforming the S&P 500 and its largest sector, Industrials [1] Group 1 - The Procure Space ETF has experienced volatility in October after a strong performance earlier in the year [1] - The ETF's year-to-date performance indicates a robust interest in next-frontier investments, highlighting a shift in investor sentiment towards high-beta assets [1] - The performance of the Procure Space ETF suggests a growing trend in thematic investing, particularly in sectors related to space and technology [1]

The high-beta trade was relentless from mid-April through Q3. October has brought about volatility for funds like the Procure Space ETF (NASDAQ: UFO ), however. Up 64% year-to-date, the next-frontier portfolio has sharply outperformed the S&P 500 and its largest sector weight, Industrials.Freelance Financial Writer | Investments | Markets | Personal Finance | RetirementI create written content used in various formats including articles, blogs, emails, and social media for financial advisors and investment f ...