A Guide to Investing in Space ETFs
Space companies have been delivering exceptional performance in recent years, with the MSCI World IMI Space Exploration 30 Index gaining 27.2% in 2025. However, the performance has not been very bright this year, particularly since June.
The majority of the space stocks experienced a brutal third-quarter correction over the past few months, which, despite a strong rebound in late August and September, caused several space benchmarks, including the MSCI World IMI Space Exploration 30 Index, to slip year to date.
This pullback was largely caused by rising Treasury yields and broader macroeconomic pressures throughout the third quarter, heavily punishing cash-burning, speculative growth industries like commercial space, compounded by launch delays and technical setbacks.
For investors with strong conviction in the long-term fundamentals of the space industry, the pullback could present an opportunity to reassess valuations and consider whether space ETFs offer an attractive entry point.
This guide explores the growth opportunities within the global space industry, examines why the current environment may present a favorable entry point, and highlights several ETFs offering diversified exposure to the broader space economy.
Growth Opportunities in the Global Space Industry
The underlying fundamentals of the space sector remain compelling despite recent volatility. The global space economy reached a record $686 billion in 2025, up 12% year over year, with commercial activity accounting for 79% of the total, according to Space Foundation data.
Reflecting this trend, investment in the space economy is on track to exceed $100 billion for the first time in 2026, driven by defense spending, infrastructure demand and SpaceX’s landmark IPO.
The industry is rapidly transitioning from government-led initiatives to a revenue-driven model, with companies monetizing satellite connectivity, Earth observation data, and in-space services rather than simply selling hardware.
This shift is generating more predictable recurring revenue streams for the industry, which must have led the Space Foundation to project that the global space economy could surpass $1 trillion by 2032, with the commercial sector accounting for the majority.
Is This a Good Time to Invest in Space ETFs?
As the underlying fundamentals driving the space economy remain exceptionally strong, recent valuation pullbacks offer an attractive entry point in this industry.
For most investors, space ETFs offer a prudent approach to this transformative sector. The industry is inherently capital-intensive, with launch delays, technical failures and regulatory complexities posing significant risks to individual stocks.
Many space companies remain unprofitable, making them particularly susceptible to shifts in market sentiment and interest rates.
ETFs provide diversified exposure across the space value chain — from launch providers and satellite manufacturers to ground equipment suppliers and data analytics firms. This diversification cushions the impact of any single company’s setback while maintaining exposure to the sector’s long-term growth trajectory.
Space ETFs to Consider
With the recent valuation reset following the strong one-year rally, the current environment may offer an attractive entry point for investors seeking to capitalize on the long-term growth potential of the global space economy through the ETFs discussed below.
Tema Space Innovators ETF NASA
This fund, with assets under management (AUM) worth $1.07 billion, offers exposure to 37 companies involved in space exploration, rockets and propulsion systems, and satellite technology, among other commercial opportunities. SpaceX SPCX holds the first spot in this fund with 27.14% weightage, while Rocket Lab RKLB holds the second spot with 9.94% weightage.
NASA charges 75 basis points (bps) in fees and traded at a good volume of 2.46 million shares in the last trading session.
ARK Space & Defense Innovation ETF ARKX
This fund, with net assets worth $737.1 million, offers exposure to companies that are engaged in the Space Exploration and defense innovation. SPCX holds the first spot in this fund with 11.42% weightage, while L3Harris Technologies holds the second spot with 6.47% weightage.
ARKX charges 75 bps in fees and traded at a volume of 0.47 million shares in the last trading session.
Procure Space ETF UFO
This fund, with net assets worth $488.8 million, offers exposure to 67 companies engaged in space-related industries. SPCX holds the first spot in this fund with 16.58% weightage, while Trimble Inc. holds the second spot with 5.30% weightage.
UFO charges 75 bps in fees and traded at a volume of 0.25 million shares in the last trading session.
Roundhill Space & Technology ETF MARS
This fund, with AUM worth $41.4 million, offers exposure to 29 space companies powering industries reliant on space infrastructure, including GPS, internet, agriculture, banking, healthcare, and weather forecasting. SPCX holds the first spot in this fund with 27.25% weightage, while RKLB holds the second spot with 9.46% weightage.
MARS charges 75 bps in fees and traded at a volume of 0.02 million shares in the last trading session.
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Procure Space ETF (UFO): ETF Research Reports
ARK Space & Defense Innovation ETF (ARKX): ETF Research Reports
Space Exploration Technologies Corp. (SPCX) : Free Stock Analysis Report
Rocket Lab Corporation (RKLB) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).