One of the hottest themes in investing this year has been Space. Partly due to its tie-in with the broader Defense theme, and more recently, thanks to investor excitement over the upcoming SpaceX IPO, space investing as a thematic opportunity has been capturing attention and investor dollars.
This is a buzzy but relatively young category for ETF investors, and it has certainly been interesting to watch.
Today, the conversation around the opportunity in Space investing isn’t one about rocket launches as much as it’s about an infrastructure buildout and growth that has far reaching implications.
What’s the Space Economy?
The space economy, according to Space Foundation’s most recent data, is roughly a $700 billion global market. It is also one that has doubled in the last decade.
This economy is driven by a mix of government budgets and contracts, commercial infrastructure and support industries like satellite manufacturing, launch and hardware-heavy operations, as well as commercial services such as direct-to-device satellite and communications, location and navigation services, and delivery applications.
ETF Access
For ETF investors, access to this burgeoning segment is both easy and expanding, with a batch of new strategies coming to market this year.
UFO an Index-Based ETF Pioneer
One of the veteran ETFs in the segment is the Procure Space ETF (UFO), which launched in 2019.
UFO seeks to deliver as pure-play an exposure to the Space economy as possible by implementing revenue screens in its security selection. The fund looks to own companies that generate the majority of their revenues from space-related activities. This means a portfolio that not only includes rocket launchers but also a lot of communications, satellite, and navigation names. (Read more here.)
UFO tracks a benchmark that’s designed to capture the broader Space opportunity set while narrowing it down through revenue criteria. According to the methodology, SpaceX could be added to the mix shortly after it goes public.
As one of the first ETFs in this category, we’ve watched it grow from a niche idea to one that’s been capturing increasing investor attention. The fund recently crossed $500 million in assets under management, and is the market’s biggest Space ETF today by assets.
ARKX has perhaps a broader mandate, diving into what it considers “enabling technologies” like 3D printing, for example. As a portfolio, ARKX leans into defense, as a theme, offering a broad swatch of companies in this actively managed mix. ARKX has about $260 million in assets.
ETF Newcomers
Among the year’s newcomers, the Tuttle Capital UFO Disclosure ETF (UFOD) is an actively managed fund that focuses on the potential economic impact of Unidentified Anomalous Phenomena (UAP), or what we usually know as UFOs. The central idea here is that recognizing activity outside of Earth would have a meaningful, disruptive impact on the economy.
UFOD invests primarily in industrial, materials, and energy segments that may benefit or be in the frontlines of new aerospace technology.
By comparison, the Tema Space Innovators ETF (NASA), which also launched in 2026, focuses on space-related activities including rocket launchers, space exploration, and satellites. The fund already owns SpaceX through a Special Purpose Vehicle (SPV) — a derivative — provided by Forge, a subsidiary of Charles Schwab.
At launch, NASA had SpaceX at about 10% of the portfolio.
Data at a Glance
Here’s a look at how these funds compare at a data level:
There’s overlap but enough distinction between these funds. Sector allocation and single stock positions vary significantly given each ETF’s methodology. Here are some comparative stats:
Sector Allocation
Holdings Comparison and Overlap
Portfolio differences have led to dispersion in performance, which are to be expected. Here’s how these ETFs stack up in recent months and longer:
All Eyes on Space
While this is not a comprehensive list of Space ETFs, it showcases not only this unique opportunity set, but also the many ways in which you can access it. Product innovation is ongoing in this category, and the highly anticipated IPO of SpaceX will only add to its mystique and appeal in the near term.
As you consider the Space frontier, a final note on its tie-in with the Aerospace and Defense theme. My colleague Roxanna Islam has done great work comparing the two themes, and the intersection of space and defense. You can read her most recent piece here.
VettaFi LLC (“VettaFi”) is the index provider for UFO, which it receives an index licensing fee. However, UFO is not issued, sponsored, endorsed or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of UFO.
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