The stars are aligning for telecom and space ETFs following the signing of a historic agreement between AST SpaceMobile Inc (NASDAQ:ASTS) and Verizon Communications Inc (NYSE:VZ).
Following the sudden rise in the stock Wednesday, several ETFs tracking ASTS, such as Procure Space ETF (NASDAQ:UFO), SPDR S&P Telecom ETF (NYSE:XTL), and iShares U.S. Telecommunications ETF (BATS:IYZ), were in focus. The funds are up 2.5%, 3.13%, and 1.5% Wednesday, at the time of publishing.
These three funds offer distinct entry points into the emerging space-to-smartphone revolution.
UFO: The most direct space play of the trio, UFO contains a basket of satellite communications and aerospace disruptors, including AST SpaceMobile (almost 6% weightage), among its top holdings. The fund has grown, powered by investors’ love for LEO satellite infrastructure and direct-to-device connectivity.
XTL: This fund holds a snapshot of U.S. telecom and communication technology companies, with a balance between traditional carriers and disruptors such as AST SpaceMobile. AST accounts for 6.21% of the fund’s weight. XTL’s diversified design acts as a buffer against volatility, while providing upside from telecom plays driven by innovation.
IYZ: Targeting legacy powerhouses like Verizon (11.82% weightage), AST (6.2%) and AT&T Inc (NYSE:T) (12.31%), IYZ offers investors a steady hand in the telecommunications space. The AST-Verizon transaction gives it a space-age spin on its portfolio, an old-school telecom play that’s now edging into orbital territory.
Driving Force Behind This ETF Excitement?
A firm commercial deal between Verizon and AST SpaceMobile, unveiled on Wednesday, that will provide direct-to-cellular connectivity from 2026. The agreement combines Verizon’s robust 850 MHz spectrum with AST’s low-Earth-orbit (LEO) satellite constellation, enabling regular smartphones to directly connect to satellites — a significant step forward for rural and underserved areas.
The deal will bring the footprint of Verizon’s 850 MHz premium low-band spectrum to regions of the U.S. where the pervasive reach of space-based broadband technology would be valuable, stated Abel Avellan, CEO of AST SpaceMobile.
AST SpaceMobile is also gearing up for a satellite launch flurry. Its BlueBird 6 satellite has undergone final assembly and will be shipped to India for launch on Oct. 12. Barclays reacted to the momentum by lifting its price target to $60 as it cited the company’s increasing commercial momentum.
The firm will launch 45–60 satellites by the end of 2026, with periodic U.S. service scheduled to take off late next year. To finance this growth, AST has also sought an $800 million at-the-market offering, allowing investors to balance risks of dilution against opportunities for upside from leadership in the industry.
For ETF investors, the AST-Verizon partnership serves to reinforce the message that the union of telecom and space is an investable trend. Whether it’s via UFO’s satellite-rich portfolio, XTL’s diversified telecom exposure, or IYZ’s blue-chip core, the tether between ground and orbit is tightening up and landing right in your pocket.
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