Key Points
- Space ETFs are a growing fund category that invests in companies tied to space exploration, including rocket makers, telecom providers, and defense contractors.
- These ETFs simplify investing in the space industry by handling the research and stock selection for investors.
- The leading space ETFs have generated annualized returns above 20% over the past three years, with additional space-focused funds expected to launch.
SpaceX’s highly anticipated IPO, targeting a $1.75 trillion debut, has turned space stock investing into one of the year’s top market trends. The company seems to have galvanized new interest in space, raising investor awareness of exploration’s opportunities and potential.
As a result, fund companies have been racing to launch space exchange-traded funds (“ETFs”) to capitalize on that enthusiasm. In fact, during the first few months of 2026, nine ETFs have already been launched or filed for an offering.
Of course, it’s not just SpaceX that’s profiting from space. A wide range of companies across several industries, including telecom and defense, have already been actively leveraging space. However, with so much development going on, investors may find it difficult to pick the winning space investments.
One solution is to find the best space ETFs. These funds, detailed below, have all delivered an annual average of more than 20% over the past three years. The potential for strong future returns without the need to analyze stocks makes ETFs a great choice for individual investors.
ETFs take the hard work out of analyzing the space industry’s top-performing companies and avoid the downside of investing in a losing stock. Investors avoid the time and energy required for a detailed analysis, since funds do this heavy work for them, often at a low cost.
So, the best space ETFs offer a convenient way for investors, from beginners to advanced, to create a winning portfolio of space stocks with the potential for solid returns.
Top Space ETFs to Invest in for 2026
The best space ETFs are mainly passively managed funds, meaning they track a pre-selected index and replicate its stocks. These funds offer various space-related stocks, so it’s important to look closely at what the fund invests in and how it’s weighted.
Space exploration is closely related to a range of other industries, including aerospace, defense, and telecommunications. Because of this overlap, many space funds include stocks that cut across more traditional industry groupings, and they’re not “pure” space-exploration funds.
The funds listed below have at least three-year track records. In contrast, many funds are launching to piggyback on the boom in interest in space-related sectors. Only a handful of space funds meet the criteria below, including a strong record of returns.
| Fund (ticker) | One-year return | Three-year annualized return | Expense ratio |
| iShares U.S. Aerospace & Defense ETF (ITA) | 34.3% | 25.4% | 0.38% |
| Ark Space & Defense Innovation ETF (ARKX) | 67.2% | 34.0% | 0.75% |
| Procure Space ETF (UFO) | 123.7% | 41.7% | 0.75% |
| State Street SPDR S&P Kensho Final Frontiers ETF (ROKT) | 100.9% | 40.7% | 0.45% |
How MarketWise Selected These Funds
MarketWise chose its best space funds based on the following criteria:
- Funds with exposure to the aerospace and defense industry
- Funds with strong one-year and three-year returns
- A reasonable expense ratio
- No leveraged or inverse funds
We have not included funds such as the Global X Space Tech ETF (ORBX), since it launched in April 2026 and has few assets under management. However, its holdings are tightly focused on space exploration stocks, which may be appropriate for those seeking focused exposure.
1. iShares U.S. Aerospace & Defense ETF (ITA)
This fund tracks the Dow Jones U.S. Select Aerospace & Defense Index, which includes publicly traded U.S. aerospace and defense stocks. The fund sports the lowest expense ratio here at 0.38%.
Top holdings: GE Aerospace (GE), RTX (RTX), Boeing (BA), General Dynamics (GD), Howmet Aerospace (HWM)
2. Ark Space & Defense Innovation ETF (ARKX)
This actively managed fund invests in firms that lead, enable, or benefit from “technologically enabled products and/or services that occur beyond the surface of the Earth.” So, the fund includes themes such as reusable rockets, adaptive robotics, and advanced batteries, among others. The fund’s higher performance has justified its higher 0.75% expense ratio thus far.
Top holdings: L3Harris Technologies (LHX), Rocket Lab (RKLB), Teradyne (TER), Advanced Micro Devices (AMD), Deere (DE)
3. Procure Space ETF (UFO)
This passive fund tracks the S-Network Space Index, which includes companies with a majority of sales from space-related sectors, including rocket and satellite manufacturing, satellite-based telecoms, and space technology and hardware, among others. The fund has had a stellar year, making its higher-than-average expense ratio worth the reward.
Top holdings: Planet Labs (PL), Viasat (VSAT), Globalstar (GSAT), Sirius XM (SIRI), Rocket Lab
4. State Street SPDR S&P Kensho Final Frontiers ETF (ROKT)
This passive fund tracks the S&P Kensho Final Frontiers Index, which includes companies driving the exploration of space and the deep seas. The fund has had a remarkable run over the past year and charges a reasonable expense ratio of 0.45%.
Top holdings: Planet Labs, Intuitive Machines (LUNR), Iridium Communications (IRDM), ESCO Technologies (ESE), Rocket Lab
Regards,
James Royal, Ph.D.
Editor’s Note: SpaceX recently filed plans for what could become the largest AI infrastructure project in human history: up to 1 million orbital data-center satellites powered by the sun. Jeff Brown says this “Orbital AI” breakthrough could create the next generation of AI fortunes — potentially even bigger than Nvidia. He’s revealing the company he believes is best positioned to profit in this free video presentation.
