Core Insights - The article discusses the rising geopolitical risks in 2026, including conflicts in Venezuela, Ukraine, Taiwan, central Africa, southeast Asia, and the Middle East, prompting investors to consider defense ETFs as a response [1] Defense ETF Overview - Defense ETFs can help investors mitigate volatility from geopolitical risks, offering a strategic investment approach rather than reacting to fluctuating energy prices [1] ARKX ETF Details - ARKX, the ARK Space & Defense Innovation ETF, charges a fee of 75 basis points and focuses on companies involved in orbital and suborbital aerospace, targeting sectors like robotics, AI, and 3D printing [1] - Over the last three months, ARKX has returned 18.96%, benefiting from investments in major companies like L3Harris Technologies (LHX) [1] UFO ETF Details - UFO, the Procure Space ETF, also charges a fee of 75 basis points and tracks the S-Network Space Index, which includes satellite-based consumer products, space technology hardware, and intelligence services [1] - UFO has outperformed ARKX, returning 38.3% over the last three months and 74.8% over the past year, with significant investments in PlanetLabs PLC (PL) [1] Investment Outlook - A defense ETF allocation is suggested as a prudent investment strategy for the remainder of the year, with ARKX and UFO providing both passive and active investment perspectives [1]

Core Insights - The investment thesis for nuclear energy is expanding beyond electricity demand to include space exploration, with NASA's recent successful cold-flow test for a flight reactor marking a significant milestone since the 1960s [1] - Nuclear propulsion offers benefits such as reduced travel times and enhanced mission capabilities, positioning it as a key technology for deeper solar system exploration [1] - The U.S. government is committed to advancing nuclear technology, exemplified by the NASA and Department of Energy partnership to deploy a fission surface power system on the Moon by 2030 [1] Nuclear Applications - The nuclear renaissance is not limited to propulsion; it also encompasses infrastructure and medical applications, with lunar missions targeting reactors that can operate for 10 years in the lunar night [1] - Key players in the nuclear sector include: - Mirion Technologies (MIR), which focuses on medical isotopes and radiation safety [1] - Nano Nuclear Energy (NNE), which is seeking commercial partnerships for its micro-modular reactor designed for extraterrestrial use [1] - Lockheed Martin (LMT), which provides digital integration for space missions [1] - The Range Nuclear Renaissance Index ETF (NUKZ) includes these companies, with LMT being one of its top three holdings, making it a primary investment vehicle for those interested in nuclear advancements [1]

Group 1: Uranium Market - Uranium Mining ETFs have shown impressive performance, with the Sprott Junior Uranium Miners ETF (URNJ) up 38.81% YTD, Sprott Uranium Miners ETF (URNM) up 35.47%, and Global X Uranium ETF (URA) up 28.69% [1] - The Direxion Daily Uranium Bull 2X ETF (URAA) has delivered a 56.19% YTD return, designed to provide 200% of the daily performance of URA's underlying index [1] Group 2: Critical Materials - The Trump Administration plans to create a strategic critical-minerals stockpile with $12 billion in funding to protect domestic manufacturers from supply shocks and reduce reliance on Chinese rare earths [1] - Project Vault will combine $1.67 billion in private capital with a $10 billion loan from the U.S. Export-Import Bank to procure and store critical minerals [1] - The Sprott Critical Materials ETF (SETM) is up 19.97% YTD, with $487 million in assets and only 1.88% exposure to China [1] - The VanEck Rare Earth and Strategic Metals ETF (REMX) is up 15.84% YTD but has a 27.5% exposure to China [1] Group 3: Space Industry - Space stocks are gaining traction, driven by investor interest in a potential SpaceX IPO in 2026 and a White House Executive Order on Space [1] - The Procure Space ETF (UFO) has $360 million in assets and a YTD return of 17.57%, while the ARK Space & Defense Innovation ETF (ARKX) has $815 million in AUM and a return of 10.39% [1] - The concept of orbital computing and reusable rockets is expected to lower costs and accelerate satellite deployment, creating opportunities for space-based infrastructure [1]

Record Orbital Launches in 2025 Create Opportunity for UFO ETFETF Trends is now VettaFi. Read More - -2025 capped off a record year for orbital launches, confirming that the space industry is more than alive and well. This creates a growth opportunity set for the [Procure Space ETF (UFO)], which can capture ongoing developments in the industry in 2026.[Payload Space] highlighted the banner year for launches around the globe with 329 rocket launch attempts. Out of those attempts, 321, or about 98%, reached o ...

Core Insights - SpaceX is planning a 2026 IPO with a target valuation of $1.5 trillion, nearly doubling its current private valuation of $800 billion and potentially raising over $30 billion in new capital [1] - The space industry is expected to grow significantly, with projections of 342 orbital launches in 2025, which is double the peak of 1967 [1] - Space ETFs such as Procure Space (UFO), ARK Space (ARKX), and Kensho Final Frontiers (ROKT) are anticipated to benefit greatly from SpaceX's IPO, with potential for triple-digit upside [1] Procure Space ETF (UFO) - UFO ETF provides pure-play exposure to space stocks, with significant holdings in companies like Planet Labs (6.15% weighting) and Rocket Lab [1] - The expense ratio is 0.94%, which is relatively high but justified by the ETF's performance potential [1] ARK Space & Defense Innovation ETF (ARKX) - ARKX is actively managed by Cathie Wood and includes a mix of aerospace, defense, and semiconductor stocks, with Rocket Lab as the largest holding at 9.27% [1] - The ETF has gained 62% over the past year and has an expense ratio of 0.75% [1] State Street SPDR S&P Kensho Final Frontiers ETF (ROKT) - ROKT combines space and deep-sea exploration stocks, which are both seen as high-growth areas [1] - The ETF has a 5.77% weighting in Planet Labs and includes various military aerospace and drone stocks [1] - ROKT has the lowest expense ratio among the three at 0.45% and has risen 75% in the past year [1]

Core Insights - The Procure Space ETF (UFO) significantly outperformed the SPDR S&P 500 ETF Trust (SPY) in 2025, returning 66.36% compared to SPY's 17.72% [2][8] - The space economy is projected to grow rapidly, with McKinsey estimating it will reach $1.8 trillion by 2035, driven by increasing private sector involvement [5][6] - The S&P 500 has shown strong performance over the past three years, with expectations for continued growth in 2026, although a market correction is anticipated [3][4] ETF Performance - The UFO ETF's performance in 2025 is attributed to its focus on premier space startups that are gaining market attention [5] - The ETF's largest holding is Planet Labs at 6.47%, followed by Rocket Lab and AST SpaceMobile at 5.35% [7] Market Dynamics - The number of orbital launches has surged from 102 in 2019 to 324 in 2025, indicating a robust growth trajectory in the space sector [6] - The upcoming leadership change at the Federal Reserve may lead to continued rate cuts, potentially supporting further market gains [4]

Core Insights - The space economy is experiencing significant growth, driven by innovation and increased investor interest, with the S&P Kensho Space Index outperforming the S&P 500 by adding 65.62% over the past year compared to the S&P 500's 13.66% [1] Investment Trends - Global space-tech investment is projected to accelerate in 2025, with private funding increasing by 48% to $12.4 billion, and the U.S. capturing nearly 60% of this funding due to demand for launch services and defense programs [2][4] - The evolving nature of modern warfare and advancements in drone technology are prompting nations to invest more in space-based systems to enhance military capabilities [5] Government Initiatives - The U.S. government has elevated space as a core national security and economic priority, with an executive order aimed at returning humans to the Moon by 2028 and strengthening defenses against space-based threats [6] Market Dynamics - A potential SpaceX IPO could serve as a significant catalyst for the space sector, potentially influencing market dynamics and attracting new investment into the industry [7] Investment Vehicles - Investors are encouraged to explore ETFs focused on the space economy, such as Procure Space ETF (UFO), ARK Space & Defense Innovation ETF (ARKX), and SPDR S&P Kensho Final Frontiers ETF (ROKT), which offer distinct long-term growth potential [8] - ARKX is noted for its liquidity and largest asset base of $767.1 million, while ROKT is highlighted as the most cost-effective option for long-term investing with an annual fee of 0.45% [9]

Group 1 - Thematic exchange-traded funds (ETFs) are experiencing a resurgence, with the Procure Space ETF (UFO) showing significant growth, currently managing over $240 million in assets [1] - Thematic funds serve as satellite allocations in investment portfolios, complementing traditional growth exposure and catering to investor interests, with a noted increase in demand for technology-focused thematic ETFs [2] - UFO aims to track the S-Network Space Index, which includes companies involved in the space economy, such as SiriusXM Holdings and Garmin, highlighting the diverse applications of space technology [3] Group 2 - UFO had a remarkable performance in 2025, gaining nearly 70%, and outperformed other diversified thematic ETFs, indicating the potential for passive funds in a market driven by active demand [4] - The growing interest in thematic ETFs and the expanding space industry suggest a promising outlook for UFO in 2026, making it a fund to watch for investors [5]

Core Viewpoint - The Procure Space ETF (UFO) has completed its quarterly rebalance, focusing on emerging space companies and increasing its exposure to lunar exploration and satellite infrastructure providers [1][2]. Group 1: ETF Rebalance Details - The S-Network Space Index, which underlies UFO, added four new holdings: Momentus Inc. (MNTS), Sidus Space Inc. (SIDU), GomSpace Group (GOMX), and Space-Communication Ltd. [3] - Ispace Inc., a Japanese lunar exploration company, saw its index allocation rise by 38% during the rebalance, while Satellogic Inc. (SATL) received a 31% allocation increase [3]. - Redwire Corp. (RDW) gained a 14% share increase, and Rocket Lab USA Inc. (RKLB) saw a 6.3% allocation climb [4]. - AST SpaceMobile Inc. (ASTS) received a 5.1% allocation increase, with no companies removed from the index, only adjustments made to existing holdings [5]. Group 2: Adjustments to Established Holdings - The index reduced its exposure to established telecommunications and defense companies, with Eutelsat Group (ETL) seeing a 16% allocation drop [6]. - Defense contractors Lockheed Martin Corp. (LMT) and Northrop Grumman Corp. (NOC) experienced decreases of less than 2%, while Comcast Corp. (CMCSA) dropped by 1.3% [6]. - Telecommunications providers AT&T Inc. (T) and T-Mobile US Inc. (TMUS) saw allocation decreases of 2.1% and 1.5% respectively [7]. Group 3: ETF Performance and Structure - The Procure Space ETF has attracted $92.4 million in net inflows over the past year and delivered a 77% return [2]. - The ETF carries a 0.75% expense ratio and holds $195.5 million in assets, having launched in April 2019 and rebalancing quarterly [7].

Core Insights - Ark Invest's ETFs significantly outperformed the S&P 500 in 2025, with the Autonomous Technology & Robotics ETF leading the gains [1][2] Performance Comparison - The S&P 500, tracked by the SPDR S&P 500 ETF Trust (SPY), had a gain of +16.6% in 2025, while the following Ark Invest ETFs showed the following gains: - Ark Autonomous Technology & Robotics ETF (ARKQ): +49.8% - Ark Space & Defense Innovation ETF (ARKX): +49.2% - Ark Next Generation Internet ETF (ARKW): +35.4% - Ark Innovation ETF (ARKK): +35.2% - Ark Blockchain & Fintech Innovation ETF (ARKF): +27.2% - Ark Genomic Revolution ETF (ARKG): +18.4% [5] Sector Focus - The top-performing Ark Invest ETFs were heavily weighted in sectors such as AI, robotics, and space, which experienced strong returns in 2025 [3] Upcoming Opportunities - A potential SpaceX IPO in 2026 could enhance the visibility and performance of the Ark Space & Defense Innovation ETF and other space-related investments [3] Holdings Analysis - The top 10 holdings of the Ark Autonomous Technology & Robotics ETF (ARKQ) and the Ark Space & Defense Innovation ETF (ARKX) show significant overlap, with both funds sharing nine of the same stocks. The only differences are Tesla as the top holding in ARKQ and L3Harris as the second-largest holding in ARKX [8] Future Trends - AI, autonomous technology, and robotics are expected to remain key trends, potentially benefiting ARKQ in 2026. Increased revenue for defense companies due to global tensions may also position ARKX for strong performance [9]