The Pentagon Is Pouring Billions Into Space Industry As Chinese Threat Grows
Portfolio Pulse from Johnny Rice
The Pentagon is increasing its investment in space capabilities in response to China's growing space threat, with a $33.3 billion space budget for fiscal year 2024, a 15% increase YOY. This investment is crucial for US defense and the functioning of the military, as well as the global economy and daily life. ProcureAM's Space ETF (UFO) and its top holdings, including Sirius XM Holdings (SIRI), Globalstar Inc (GSAT), and Virgin Galactic Holdings Inc (SPCE), are likely to benefit from this increased spending.
December 18, 2023 | 8:45 pm
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POSITIVE IMPACT
Globalstar Inc (GSAT) stands to benefit from the Pentagon's increased space budget as a top holding of UFO and a direct participant in the space industry.
GSAT's relevance is high due to its role in the space industry, which is the primary beneficiary of the Pentagon's increased budget, and its position as a top holding of UFO.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Sirius XM Holdings (SIRI), as a top holding of UFO, may see a positive impact from the increased defense spending on space capabilities.
SIRI's potential benefit is based on its association with UFO, which is set to capitalize on the increased space budget, though the direct impact on SIRI may be less pronounced than for pure space-focused companies.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Virgin Galactic Holdings Inc (SPCE) may experience a positive impact from the Pentagon's increased space budget, being a top holding of UFO and involved in the space sector.
SPCE's relevance is significant as it is part of the space industry, which is directly influenced by defense spending, and it is a major holding within UFO's portfolio.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
ProcureAM's Space ETF (UFO) is expected to benefit from the Pentagon's increased space budget, as it invests in companies that are likely to receive a portion of this funding.
UFO's relevance and potential benefit from the Pentagon's increased space budget is high due to its thematic focus on the space industry, which is directly impacted by government defense spending.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90