Thousands of investors just got in on SpaceX*, but they’re missing out on the bigger picture. The space industry beyond SpaceX we believe has the diversification and commercial upside to compete with traditional aerospace investments in portfolios across the board.

SpaceX’s initial public offering on June 12th, 2026 raised nearly $75 billion¹ with a valuation of $1.8 trillion,² a figure that many still cannot fathom. While SpaceX brought attention to the space industry, evaluating investment in space through SpaceX alone is grossly misleading. Investors who focus on just SpaceX are skipping the actual comparison that may put space ahead of classic aerospace and defense (A&D) investments: revenue dependence and what that means for an investor’s exposure.

Throughout the A&D industry, government reliance provides the risk of a singular revenue stream. In FY2025, U.S. government customers accounted for approximately 72% of Lockheed Martin’s* consolidated sales.³ Northrop Grumman’s* government-concentrated sales are historically cited around 95% to 98%.⁴ Investors should not ignore this massive concentration risk. Lockheed Martin’s own FY2024 10-K filing admits that any decision by the U.S. or other allied governments to cut spending would have an adverse impact on the company’s business.⁵ This is not a hypothetical situation. During the Federal government’s shutdown in 2025, General Dynamics* was forced to enter the commercial paper market to cover non-payment issues.⁶

SpaceX, in a way, faces this same risk as a leading player in the space industry. What sets SpaceX apart from the A&D majors is the scale of its commercial revenue: its Starlink business alone generated $11.4 billion in 2025⁸ — about 61% of the company’s roughly $18.7 billion in total revenue — which offsets its government dependency.⁷

The Procure Space ETF^® (ticker: UFO) demonstrates the diversity of the space industry. As the first pure-play space exchange-traded fund, its holdings include rocket and satellite manufacturers, as well as other space-related communications and industrial firms:

The Procure Space ETF^® is a more complete visualization of what the space industry really is, much more commercialized and innovative rather than federally reliant. To capture the breadth of the industry, UFO has grown from 30 holdings to 64 as of June 2026,¹⁰ and its assets under management grew from $33 million to over $1 billion between the end of 2024 and May 2026.¹¹

A McKinsey & Company report estimates the global space economy to reach $1.8 trillion by 2035, up from $630 billion in 2023.¹² This is nearly twice the projected rate of global GDP growth and is just the beginning.

UFO’s pure play, diversified constituent base means no single company, including SpaceX itself, drives the fund’s performance. While space stocks broadly saw volatility around SpaceX’s June IPO, UFO’s construction spreads that exposure across dozens of companies rather than concentrating it in one name.

As of June 30, 2026, UFO’s year to date NAV Return was 31.76% and Market Value Return was 31.25%.¹³

Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Funds may be lower or higher than the performance quoted. All performance is historical and includes reinvestment of dividends and capital gains. Performance data current to the most recent month end may be obtained by calling 866-690-ETFS (3837).

The comparison between space and A&D is one of diversification and investor exposure. Investors with different needs and tolerances may pursue one sector or another. Regardless, it seems like space is destined for the stars.