By ProcureAM Research

During his speech to Congress, President Trump spoke of “building the most powerful military of the future.” The Procure Space ETF^® includes many well-known corporations engaged in important military work, as well as space companies that have become an integral part of defense as warfare strategies have evolved.

As part of a mandate to create a strong military, President Trump asked Congress to “fund a state-of-the-art Golden Dome missile defense shield to protect our homeland. All made in the USA.” Israel already has an Iron Dome, which was the product of a joint venture between RTX* (formerly Raytheon Technologies) and Israeli firm Rafael Advanced Defense Systems*. RTX manufactured the system and produces components for Iron Dome missiles.

L3Harris* expects to utilize artificial intelligence (AI) to enhance the Golden Dome initiative. The firm has secured over $2 billion in missile-tracking satellite contracts from the government.¹ Unlike Israel, the United States needs to monitor a variety of threats over a larger geographic mass. The goal is to follow both active threats, as well as anticipate future attacks.

Lockheed Martin*, in conjunction with L3Harris subsidiary company Aerojet Rocketdyne*, was selected to continue developing the Next-Generation Interceptor (NGI). The NGI will yield a new homeland missile defense interceptor.  Aerojet Rocketdyne will be building the propulsion systems. Finally, Northrop Grumman* is another firm expected to benefit from military contracts designed to bolster American defense systems. 

TD Cowen recently highlighted RTX, Lockheed Martin, and Northrop Grumman as long-term picks for defense stocks. The firm estimates the drive to increase anti-missile defense systems will require tens of billions of dollars to build up the current programs. Combined with the expected fast-tracking of these projects, TD Cowen anticipates a surge in missile defense and space-based tracking investments.² 

Outer space has been referred to as the new battleground in warfare. Firms in the space industry have been expanding their defense capabilities. Satellites will be critical in providing communications, tracking, and imagery data for the military. Redwire* is a leader in Very Low Earth Orbit capabilities essential for future defense and intelligent operations. They also recently acquired drone producer Edge Autonomy*. 

BlackSky* secured a major U.S. contract for next generation Gen-3 Tactical Geospatial Intelligence capabilities. The project aims to enhance space-based intelligence, surveillance, and reconnaissance for the U.S. Department of Defense.³ 

Planet Labs* has a history of providing high-frequency imagery combined with AI to enable armed forces to receive strategic reports on broad area monitoring and analytics on changing situations. All of these capabilities will be essential in military situations.

Companies providing space-enabled products and services will play a vital role in helping to give miliary forces an edge. To learn more about the space companies found within the Procure Space ETF^® (NASDAQ: UFO), please visit www.ProcureETFs.com.              

¹ “L3Harris taps commercial AI partners for Pentagon’s Golden Dome program,” by Sandra Irwin, SpaceNews.com, March 13, 2025.

² “Analysts: Buy These 3 Defense Stocks as Trump Pushes for an Iron Dome”, by Sristi Suman Jayaswal, TheGlobeandmail.com, Feb.20,2025.

³ “BlackSky secures major U.S.Defence Contract for next-generation tactical GEOINT”, by Defense Industry Europe, defence-Industry.eu, February 28,2025.

Important Information:

*As of March 14th, 2025, BlackSky Technology (BKSY) was a 1.46% holding, L3Harris (LHX) was a 2.28% holding, Lockheed Martin (LMT) was a 2.29% holding, Northrop Grumman (NOC) was a 2.47% holding, Planet Labs (PL) was a 4.96% holding, Rafael Advanced Defense Systems was a 0.00% holding, Redwire (RDW) was a 1.53% holding. RTX Corporation (RTX) was a 2.70% holding in the Procure Space ETF^® (NASDAQ: UFO). Aerojet Rocketdyne is a subsidiary of L3Harris. Edge Autonomy was acquired by Redwire.

For a complete list of holdings in UFO, visit: https://procureetfs.com/ufo/. Fund holdings and sector allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security. 

Please consider the Fund’s investment objectives, risks, and charges and expenses carefully before you invest. This and other important information is contained in the Fund’s summary prospectus and prospectus, which can be obtained by visiting procureetfs.com. Read carefully before you invest.

Investing involves risk. Principal loss is possible. The Fund is also subject to the following risks: Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the funds. Brokerage commissions will reduce returns. 

Aerospace and defense companies can be significantly affected by government aerospace and defense regulation and spending policies. The exploration of space by private industry and the harvesting of space assets is a business based in future and is witnessing new entrants into the market. Investments in the Fund will be riskier than traditional investments in established industry sectors. The Fund is considered to be concentrated in securities of companies that operate or utilize satellites which are subject to manufacturing delays, launch delays or failures, and operational and environmental risks that could limit their ability to utilize the satellites needed to deliver services to customers. Investing in foreign securities are volatile, harder to price, and less liquid than U.S. securities. Securities of small- and mid-capitalization companies may experience much more price volatility, greater spreads between their bid and ask prices and significantly lower trading volumes than securities issued by large, more established companies. The Fund is not actively managed so it would not take defensive positions in declining markets unless such positions are reflected in the underlying index. Please refer to the summary prospectus for a more detailed explanation of the Funds’ principal risks. It is not possible to invest in an index.

UFO is distributed by Quasar Distributors LLC.