Companies in the fund must generate more than $500m in annual space-related revenue
Procure Innovation has launched Europe’s first space ETF on white-label platform HANetf, bringing the total fund suite to a dozen.
Procure Space UCITS ETF (YODA) is set to list on the London Stock Exchange this month, offering investors access to a portfolio of companies deriving at least 20% of their total revenue from space-related activities.
The fund, which has a sister ETF in the US (UFO), tracks the S-Network Space index, comprised of over 30 companies spanning across industries such as satellite-based telecommunications, rocket and satellite manufacturing, deployment, operation and maintenance, and space-based imagery and intelligence services.
Companies in YODA must generate more than $500m in annual space-related revenue, with roughly 80% of the index allocated to companies generating “at least half, but typically all” of their revenue from space-related activities.
Top holdings in the ETF include Trimble, Garmin, DISH Network, Eutelsat Communications and SKY Perfect JSAT, while 71% of the index is listed in the US.
It will be available to investors for a total expense ratio of 0.75%.
Robert Tull, president of Procure Innovation, said: “We are thrilled to launch Europe’s first Space ETF, YODA. Space infrastructure is enabling numerous technologies like 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 for investors in YODA.
“The commercialisation of space, whether it is launching satellites to help meet the growing demands for data transfer or to support GPS systems and weather forecasts shows how the space economy is a part of people’s everyday lives and not just about space exploration.
“Launching the first European space ETF with HANetf is hugely exciting and we are confident the force will be with YODA and investors as the space industry continues to grow.”
Hector McNeil, co-founder and co-CEO of HANetf, added: “We have wanted to launch a space ETF for a long time and are delighted that we are now able to deliver the first in Europe with a tailored index specifically designed to capture the exciting developments across the market.
“Satellite systems and technologies are a major growth market as the growth of Uber, Deliveroo and others demonstrate. GPS is central to their success just as satellites are vital for providing higher bandwidth and coverage in broadband and telecoms.
“And of course, space tourism and hospitality is coming closer to reality with would-be customers queuing to go boldly where no man has gone before as costs come down.”