European investors have the opportunity to access the expanding space economy with the launch of the first European space ETF, Procure Space UCITS ETF on the HANetf platform with Procure Innovation.
Procure has a sister ETF in the United States with the ticker: UFO and is part of the same team that was behind notable themes, including the world’s first cybersecurity ETF.
The new ETF, the symbol YODA, will be listed on the London Stock Exchange in early June 2021 and has been cleared for sale across Europe.
Space tourism and hospitality are getting closer to reality, with potential customers lining up to boldly go where no one has gone before as costs drop.
The launch is supported by a bespoke SPACE index – the first and only certified space data product recognized by the space exploration education and defense organization Space Foundation – focused on satellite operators and manufacturers of equipment.
The SPACE Index has been designed to capture the growth of the space industry by focusing on pure-play space companies while reflecting the global market exposure with more than 80 countries operating in space.
Back-tested performance shows that it has achieved a 71.38% return over the past year (32.41% since its creation on 12/31/2014) highlighting the opportunity of the economy space for investors as governments and businesses continue to expand space exploration and public and private investment in space the industry grows.
Robert Tull, President of Procure Innovation and Founder of Procure Space UCITS ETF, said: “We are delighted to launch Europe’s first space ETF,“ YODA. ”Space infrastructure enables many technologies such as cloud computing, 5G , IoT, blockchain and beyond.
“We are pleased to provide access to the growing interest and investment in the space economy as well as the potential of investors in YODA.” Considering the interest of very successful entrepreneurs like Elon Musk, Sir Richard Branson and Jeff Bezoz is a huge indicator of the potential growth of this sector.
He added: “The commercialization of space, whether it is launching satellites to meet increasing demands for data transfer or to support GPS systems and weather forecasts, shows how space economy is part of the daily life of people and not just of space exploration.
Hector McNeil, co-founder and co-CEO of HANetf, said: “We have wanted to launch a space ETF for a long time and we are delighted that we can now offer the first in Europe with a tailor-made index specially designed to capture the exciting developments on the market.
“Satellite systems and technologies are a major growth market as demonstrated by the growth of Uber, Deliveroo and others. GPS is central to their success, just as satellites are vital to providing higher bandwidth and coverage in broadband and telecommunications.
“And of course, space tourism and hospitality is coming closer to reality with potential customers lining up to boldly go where no man has gone before as costs drop.”
The S-Network Space Index (SPACE) tracks more than 30 companies in the space industry such as satellite telecommunications; transmission of television and radio content by satellite; manufacture, deployment, operation and maintenance of rockets and satellites; manufacture of ground equipment for use with satellite systems; space technology and equipment; and space imagery and intelligence services.
Procure SPACE UCITS ETF companies must generate at least 20% of their total revenues from space activities or space revenues must exceed $ 500 million per year. Some 80% of the index by weight is attributed to companies generating at least half but usually all of their revenue from space activities, while the remaining 20% is attributed to companies generating less than half of their revenue from space activities. space.
Investments are focused on satellite operators and hardware manufacturers with prominent holdings including Trimble Inc, Gamin Ltd, DISH Network Corp, Eutelsat Communications and SKY Perfect JSAT Holdings Inc., but the index will provide a quick entry. space tourism and hospitality businesses as costs fall to meet customer demand. .
About 71% of the index is listed in the United States. The ETF will have a TER of 0.75%.