Procure Space ETF (UFO) Covered Calls

The Procure Space ETF is a global exchange-traded fund that tracks the S-Network Space Index. It provides exposure to companies involved in space-related industries, including satellite-based communications, rocket manufacturing, and space technology. The fund utilizes a tiered weighting methodology to capture the performance of both established aerospace leaders and emerging "pure-play" space entities that derive a significant portion of their revenue from extraterrestrial activities.

You can sell covered calls on Procure Space ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for UFO (prices last updated Mon 2:10 PM ET):

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The Procure Space ETF (UFO) is a thematic investment vehicle designed to track the S-Network Space Index. Managed by ProcureAM, the fund offers a diversified gateway into the global space economy. Unlike traditional aerospace funds that are often dominated by broad defense contractors, UFO focuses specifically on the "pure-play" space ecosystem. It mandates that at least 80% of its index weight be allocated to companies that derive a majority of their revenue from space-related businesses, ensuring that the fund remains a true reflection of the commercialization of the final frontier.

Core Business and Products

The fund's portfolio is spread across critical sub-sectors of the space industry. This includes Satellite-based Telecommunications (broadband and radio), Ground Equipment Manufacturing, and Rocket/Satellite Manufacturing. In 2026, the fund has increasingly rotated toward "Next-Gen" space names, including providers of orbital data centers and lunar exploration services. Key holdings typically include innovative firms such as Planet Labs, Rocket Lab, Viasat, and AST SpaceMobile. By tracking a modified equal-weight index, UFO ensures that smaller, high-growth innovators have a meaningful impact on the fund's overall performance alongside established satellite operators.

Competitive Landscape

UFO competes in a high-growth thematic niche, facing both actively managed innovation funds and passive aerospace benchmarks. The fund distinguished itself in late 2025 and early 2026 by significantly outperforming broader thematic rivals during a surge in commercial space interest. Key competitors that trade on major exchanges and feature active options markets include:

1. ARK Space Exploration & Innovation ETF: An actively managed competitor that takes a broader view of "aerospace beneficiaries," including companies like agricultural firms that utilize GPS data.
2. iShares U.S. Aerospace & Defense ETF: A traditional sector fund that provides heavy exposure to massive defense incumbents like Boeing and Lockheed Martin, offering a lower-risk but less "space-pure" alternative.
3. SPDR S&P Kensho Final Frontiers ETF: A low-cost competitor that uses artificial intelligence to scan for companies involved in both outer space and deep-sea exploration.
4. Rocket Lab USA: A major individual holding and a direct way for investors to play the launch services market without the diversification of an ETF.
5. EchoStar Corporation: A significant industry peer that provides satellite-based communication services, competing for the same institutional capital looking for orbital infrastructure exposure.

UFO is frequently used by tactical traders as a "proxy" for the private space market, particularly during periods of intense speculation surrounding high-profile private company IPOs.

Strategic Outlook and Innovation

The strategic outlook for UFO is centered on the rapid decline in launch costs and the burgeoning demand for space-based infrastructure to support terrestrial AI workloads. As satellite constellations grow, the fund is positioned to benefit from the rise of the "Orbital Economy," where data processing and secure communications are increasingly handled in space to avoid terrestrial bottlenecks. Recent rebalances have seen the fund increase its exposure to "New Space" firms specializing in Earth observation and geospatial intelligence, which are becoming essential for global supply chain monitoring and climate risk assessment.

Innovation within the index involves capturing the shift toward reusable launch vehicles and the mass production of "SmallSats." The fund management team at ProcureAM emphasizes the importance of its "Space Revenue" filter, which helps avoid "space-washing"—a term for large conglomerates that have space divisions but whose primary profits come from unrelated earthbound activities. This purity of exposure is designed to provide investors with a high-alpha tool as the global space industry transitions from a government-funded sector to a commercial-led ecosystem valued in the trillions of dollars.

Want more examples? UFI Covered Calls | UFPI Covered Calls