A Fund Named YODA Is Coming to London as Space ETFs Go Global

The ETF space race is going global, as a new intergalactic-inspired product prepares for its London debut in the coming days.

With a ticker pulled straight from the pop-culture playbook, YODA will be the first exchange-traded fund in Europe tracking the “space economy,” according to a release from issuer Procure Holdings.

It joins a tiny handful of similarly themed offerings in North America, and its arrival comes two months after Cathie Wood rode the space-investing trend to one of the best launches in ETF history.

Wood and Ark Investment Management’s first new product since 2019 was a shot in the arm for a nascent industry that enjoys the backing of several billionaire entrepreneurs and promises everything from space tourism to intergalactic broadband.

The offering will test appetite for futuristic technologies after a rocky stretch for growth stocks of late that has curbed some of the speculative euphoria.

A Fund Named YODA Is Coming to London as Space ETFs Go Global

“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,” said Robert Tull, president of Procure.

The Pennsylvania-based ETF manager already runs the $129 million Procure Space product (UFO) listed in the U.S. The European fund -- whose ticker is inspired by the popular Jedi master from “Star Wars” -- will share many of the same top holdings, including Trimble Inc., Garmin Ltd. and DISH Network Corp.

All the same, a stock rotation has seen investors recently ditching high-flying growth companies for more down-to-earth targets likely to benefit from reopening economies. ETFs that track themes like innovation and disruption have just notched their first month of outflows in more than a year, Bloomberg Intelligence data show.

Still, there are signs that plenty of investors may be in it for the long haul.

Ark’s space ETF has returned less than 2% since launching compared with 6% for the Nasdaq 100 Index, but investors have pulled hardly any cash. The Space Exploration & Innovation product boasts more than $630 million in assets.

©2021 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.