Like Space Stocks? Consider Adding These 3 ETFs To Your Portfolio

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The space industry is the next frontier in more ways than one. Investors are starting to give this once quiet area of the market increasing attention. There are an assortment of companies in the industry, but considering diversified ETFs such as the Procure Space ETF (UFO), Invesco Aerospace & Defense ETF (PPA), and SPDR S&P Aerospace & Defense ETF (XAR) might be the better play.

Space stocks and ETFs have received plenty of attention in 2020 and at the start of the new year. President Biden is fully backing former President Trump’s Space Force. This decision is music to the ears of space stock/ETF investors.

Instead of attempting to sort through all of the space industry stocks, the better approach is to invest in space ETFs. Contrary to popular opinion, there are several space ETFs to choose from, many of which are worth serious consideration from an investing perspective.

Let’s take a look at three of the top Space ETFs: Procure Space ETF (UFO - Get Rating), Invesco Aerospace & Defense ETF (PPA - Get Rating), and SPDR S&P Aerospace & Defense ETF (XAR - Get Rating).

Procure Space ETF (UFO - Get Rating)

UFO is a space ETF that tracks worldwide aerospace corporations. This ETF is tier-weighted. In fact, UFO is the first-ever worldwide aerospace and defense ETF. Check out the UFO holdings, and you will find the companies that comprise this ETF span numerous industries ranging from space tech companies to space intelligence and imagery services, satellite companies, and rocket manufacturers.

UFO is split into two distinct tranches. The initial tranche consists of non-diversified businesses that draw a minimum of half their revenue from operations related to the business of space. The second tranche consists of companies that make space industry equipment and technology. It is particularly interesting to note this diversified group of companies consists of 20% of UFO’s weight while 80% of the fund consists of the first tranche’s non-diversified stocks.

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