CNN/Department of Defense
- A space-focused ETF just added UFO interference as a possible risk to fund performance in its prospectus.
- The ProcureAM Space ETF (ticker UFO) said flying objects could interfere with many of the satellite companies that the fund tracks.
- The risk disclosure comes as a US government report on UFOs says it still can't explain more than 140 sightings.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
A space-themed exchange traded fund just updated its prospectus to include a potential risk to fund performance: UFOs.
The manager behind the Procure Space ETF, which trades under the ticker UFO, said on Monday it added the unidentified aerial phenomena, or "UAP", risk disclosure after top US intelligence and military officials released an report addressing numerous sightings of unexplainable objects.
The UFO ETF tracks companies involved in the space industry, including companies that use satellite technology which could be impacted by abnormal aerial activity.
"Given that currently there is no identification of these observed phenomena, it is possible that UAPs could create unintentional or deliberate operational, data security, 'cyber' and other interference with the operation of satellites and other objects in space," the fund prospectus said. "Such activities could result in a significant adverse impact on the Fund's securities, thereby causing the Fund's investment in such portfolio securities to lose value and adversely affecting the Fund's ability to fulfill its investment objectives."
The $128 million AUM fund launched in 2019 and tracks an index that invests at least 80% of its net assets in companies that receive a majority of their revenue from space-related businesses. Along with satellite companies, the fund also holds space-based intelligence service companies, rocket operation companies, space hardware companies, and more.
Its fact-sheet entices investors with the promises of investing in "other-worldly" opportunities.
The ETF is up nearly 24% year-to-date.
"UFOs, once a figment of science fiction, have now captured mainstream attention and present legitimate national security concerns," said Andrew Chanin, ProcureAM CEO and co-founder. "Whether originating from foreign adversaries or extraterrestrial activity, UAPs have potentially wide-reaching implications that we need to start taking seriously. We are truly just scratching the surface of what we know."
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