US ETF issuer Procure has partnered with white-label ETF platform HANetf to launch Europe’s first space ETF.
The Procure Space UCITS ETF (YODA) is set to list on the London Stock Exchange in early June with a total expense ratio (TER) of 0.75% and will be passported for sale across Europe.
YODA is a mirror strategy of the US-listed Procure Space ETF (UFO) which has gathered $128m assets under management (AUM) since launching in November 2019.
Like UFO, YODA will track the S-Network Space index which offers exposure to over 30 space industry companies.
This includes companies involved in satellite-based telecommunications, transmission of television and radio content via satellite, rocket and satellite manufacturing, deployment, operation, and maintenance; manufacturing of ground equipment that is used with satellite systems; space technology and hardware and space-based imagery and intelligence services.
To be included in YODA, companies must generate at least 20% of their total revenues from space-related activities or space revenue must exceed $500m annually.
The firm added some 80% of the index is currently weighted to companies generating at least half of their revenue from space activities.
The index is the first Certified Space Data Product recognised by Space Foundation, a space exploration education organisation.
Commenting on the launch, Robert Tull, president of Procure, said: “Space infrastructure is enabling numerous technologies like cloud computing, 5G, IoT, blockchain and beyond.
“Given the interest of highly successful entrepreneurs such as Elon Musk, Sir Richard Branson and Jeff Bezos is a huge indicator of the potential growth in this sector.
“The commercialisation of space, whether it’s 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.”
Hector McNeil, co-founder and co-CEO at HANetf, added: “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.”
There is significant competition in the space ETF space in the US after Cathie Wood's Ark Invest launched the ARK Space Exploration & Innovation ETF (ARKX) in March which has $627m AUM.