Monday, April 22, 2019

The New Procure Space Exchange-Traded Fund Facilitates Space Industry Investments

          By Brian Orlotti

Levittown NY based asset management firm Procure Holdings and New York NY based Space Investment Services, a firm founded by former Space Foundation Director of Research Micah Walter-Range, have joined forces to create the Procure Space Exchange-Traded Fund (UFO ETF). The new fund is structured to allow everyday investors a chance to own their own stake in the growing space industry.

An exchange-traded fund (ETF) is a type of fund that owns stock in multiple companies across one industry or several industries. Investors may buy and sell an ETF with its price fluctuating over time. ETFs advantages include lower purchase prices and fewer broker commissions over purchasing individual stocks.

The UFO ETF was created to address a common investor issue; a lack of publicly-traded companies that generate the majority of their revenue from space business.

Firms like Hawthorne CA SpaceX, Kent WA based Blue Origin, Huntington Beach CA based Rocket Lab and Mojave CA based Virgin Galactic are on the cutting edge of space technology but, being privately owned, are inaccessible to the majority of investors.

The UFO ETF focuses, wherever possible, on firms that derive 80% or more of their revenue from space.

The ETF is not restricted to US companies either, with stakes in MacLean VA based Iridium Satellite Communications, London UK based Inmarsat and Betzdorf Luxembourg based SES as well as industrial manufacturers like Melbourne FL based Harris Corporation and  Leiden Netherlands based Airbus.

Front cover of the Q4 2018 Space Angels quarterly report on the international space industry. The complete report is available online for download here. Graphic c/o Space Angels.

The UFO ETF comes at a time of increasing investment into the private space industry.

New York NY based investment firm Space Angels recently released a report stating that more than $20Bln US ($27Bln CDN) has been invested into 435 space companies over the last decade. These investments have recently accelerated, with Q1 2019 seeing 29 fund raising rounds inject $1.7Bln US ($2.3Bln CDN) of equity into space companies, nearly double the previous quarter.

Space Angels pointed to the pouring of resources into satellite internet networks by a variety of firms including SpaceX, London UK based OneWeb and Seattle WA based Amazon.

It is heartening to see the space industry, once derided by investors with giggles and snorts, now a magnet for capital. With its now-swelling coffers, the space industry can at last lay the foundations of an off-world economy and propel humanity into a new age.

Let a thousand rockets boom.
Brian Orlotti.

Brian Orlotti is a network operator at the Ontario Research and Innovation Optical Network (ORION), a not-for-profit network service provider to the education and research sectors.

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