Listen to the audio version of this article (generated by AI).
Key Points
- Space ETFs are a fast-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.
Space stock investing is one of this year’s hottest market trends, as SpaceX (SPCX) held the largest-ever IPO and put the space industry on everyone’s mind. While SpaceX’s multi-trillion-dollar debut raised investor awareness of the emerging opportunities in space exploration, the field is much broader.
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 underway, investors may find it difficult to identify the winning space investments for their portfolios.
Fund companies have been racing to launch space exchange-traded funds (“ETFs”) to capitalize on that enthusiasm. In fact, during the first three months of 2026, nine ETFs launched or filed for an offering, leaving investors with a ton of choices.
One solution is to find the best space ETFs. These funds, detailed below, have all delivered annual average returns 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.
4 Top Space ETFs to Buy
This list of the best space ETFs offers various space-related stocks, so it’s important to look closely at what each 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 a three-year track record. In contrast, many new funds are trying 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) | 27.5% | 28.3% | 0.38% |
| Ark Space & Defense Innovation ETF (ARKX) | 33.0% | 29.7% | 0.75% |
| Procure Space ETF (UFO) | 58.9% | 37.1% | 0.75% |
| State Street SPDR S&P Kensho Final Frontiers ETF (ROKT) | 72.0% | 38.5% | 0.45% |
Source: Data from Morningstar, as of July 10, 2026
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%. The fund’s nearly 50 positions skew heavily toward more traditional defense names, making it a better fit for investors seeking a defense angle in space exploration.
Assets under management: $14.3 billion
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. It may be better suited for investors looking for more focused space exposure.
The fund’s higher performance has justified its higher 0.75% expense ratio thus far.
Assets under management: $863.6 million
Top holdings: SpaceX (SPCX), L3Harris Technologies (LHX), Rocket Lab (RKLB), Deere (DE), Kratos Defense & Security Solutions (KTOS)
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, such as rocket and satellite manufacturing, satellite-based telecoms, and space technology and hardware, among others. This fund’s portfolio is more tightly focused on telecom names and key rocket companies such as SpaceX and Rocket Lab (RKLB), meaning it might be a better pick for investors with these angles on space.
The fund has had a stellar year, making its higher-than-average expense ratio worth the reward.
Assets under management: $702.0 million
Top holdings: Viasat (VSAT), Sirius XM (SIRI), Trimble (TRMB), Garmin (GRMN), SpaceX
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%. The fund is among the cheapest on our list, yet it’s delivered the best returns over the past one- and three-year periods.
Assets under management: $235.0 million
Top holdings: Ducommun (DCO), Iridium Communications (IRDM), RTX, ESCO Technologies (ESE), Heico (HEI)
How to Invest in Space ETFs
Space ETFs offer a lot of potential, but here are a few things to watch for:
- Hot stocks can cool off quickly: The market’s hottest funds and stocks can experience a pullback rapidly if they lose favor with investors. This year’s winners become next year’s losers, and vice versa. If you believe in the long-term potential of space, you don’t need to bet it all this year. Instead, take a long-term perspective by investing regularly over time.
- Space ETFs are broader than you might realize: Don’t get caught up in the naming of these ETFs. They do a lot more than space exploration, including stocks in the telecom and defense sectors. Be sure to see what’s in your ETF to see if it has the kind of stock exposure you’re looking for, whether that’s more telecom names, defense stocks, etc.
- Check the expense ratio: The expense ratio is the annual fee you pay the fund manager, expressed as a percentage of your investment in the fund. Every dollar that doesn’t go to the fund company continues to compound for you. While lower expense ratios are preferable, some space ETFs have justified their higher fees over time.
- Review the fund’s long-term record: One of the best gauges of how a fund may do in the future is how it’s done in the past, with even longer track records being a better measure. Our list leaves out many funds that have sprung up in recent months to ride the space ETF trend. They don’t have a reliable track record yet.
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.
Recent Articles
Amazon’s $25 Billion Bond Sale: Is the AI-Debt Boom a Warning Sign or a Smart Way to Bankroll a Build-Out?
The U.S. Power Grid Is Cracking… And Off-Grid ‘Dark Energy’ Is Spreading From Tech Giants to Main Street
