The space economy is no longer just the domain of governments and astronauts. It has evolved into a rapidly growing commercial sector, projected to surpass $1 trillion by 2030. As more private companies and advanced technologies enter the space race, investors are increasingly looking for ways to gain exposure to this futuristic frontier. For those seeking lower-cost, diversified options, space-focused exchange-traded funds (ETFs) offer an accessible alternative to actively managed mutual funds.
This guide explores the top space ETFs to watch in 2025, compares their holdings, expense ratios, and performance potential, and highlights how they fit into a growth-oriented portfolio.
Why Consider Space ETFs?
Space ETFs provide investors with exposure to aerospace, satellite communications, launch services, and space-related innovation without the high fees or limited transparency of mutual funds. Here’s why growth investors are taking notice:
Lower Fees: ETFs typically carry lower expense ratios than actively managed mutual funds.
Liquidity: ETFs trade like stocks, offering real-time pricing and easy entry/exit.
Diversification: A single ETF can offer access to dozens of space-related companies across sectors.
Innovation Exposure: Many space ETFs include companies involved in AI, robotics, and communications tech.
Top Space ETFs to Watch in 2025
Below are some of the most prominent and promising ETFs offering exposure to the space economy:
1. ARK Space Exploration & Innovation ETF (ARKX)
Issuer: ARK Invest
Expense Ratio: 0.75%
Launched: March 2021
Notable Holdings: Trimble, Kratos Defense, Iridium, Boeing, Amazon
Overview: ARKX focuses on companies that enable space exploration, including orbital and suborbital aerospace firms, enabling technologies, and terrestrial beneficiaries. ARKX is actively managed, making it somewhat unique among ETFs. It has a broader interpretation of "space" exposure, including companies like Netflix and Amazon due to satellite streaming infrastructure.
Pros:
Broad definition of space innovation
Backed by ARK Invest and Cathie Wood’s thematic investing strategy
Cons:
Not a pure space play
Higher concentration in non-space tech firms
2. Procure Space ETF (UFO)
Issuer: ProcureAM
Expense Ratio: 0.75%
Launched: April 2019
Notable Holdings: SES SA, Eutelsat, Intelsat, Garmin, Iridium
Overview: UFO tracks the S-Network Space Index, focusing specifically on companies deriving most of their revenue from space-related business. It includes satellite operators, space hardware manufacturers, and ground equipment firms.
Pros:
More concentrated space exposure
Passive strategy with global reach
Cons:
Limited liquidity
Many small-cap and foreign holdings
3. SPDR S&P Kensho Final Frontiers ETF (ROKT)
Issuer: State Street
Expense Ratio: 0.45%
Launched: October 2018
Notable Holdings: Aerojet Rocketdyne, Maxar Technologies, Lockheed Martin, Northrop Grumman
Overview: ROKT combines exposure to space and deep-sea exploration technologies. It includes companies involved in satellite manufacturing, launch systems, and undersea robotics.
Pros:
Low expense ratio
Unique combination of frontier technologies
Cons:
Only partial focus on space
Lower brand recognition
4. iShares U.S. Aerospace & Defense ETF (ITA)
Issuer: BlackRock
Expense Ratio: 0.40%
Launched: May 2006
Notable Holdings: Raytheon, Lockheed Martin, Boeing, Northrop Grumman
Overview: While not exclusively space-focused, ITA offers exposure to U.S. aerospace and defense contractors heavily involved in satellite and launch services. It’s a stable option for those seeking indirect but reliable exposure to space.
Pros:
Well-established ETF with high liquidity
Includes top defense contractors with space contracts
Cons:
Not a dedicated space fund
Heavily defense-oriented
Comparison Table: Top Space ETFs in 2025
| ETF Ticker | Focus Area | Expense Ratio | Pure Space Focus? | Active or Passive |
|---|---|---|---|---|
| ARKX | Broad tech & space innovation | 0.75% | No | Active |
| UFO | Satellite & space infrastructure | 0.75% | Yes | Passive |
| ROKT | Space + deep-sea technologies | 0.45% | Partial | Passive |
| ITA | Aerospace & defense (U.S.-only) | 0.40% | No | Passive |
How to Choose the Right Space ETF for Your Portfolio
When evaluating which space ETF to invest in, consider the following:
Exposure Type: Do you want pure space industry plays or broader innovation themes?
Geographic Mix: Some funds include global firms, others focus on U.S. companies.
Volatility: Newer or smaller ETFs may be more volatile.
Fund Size & Liquidity: Look for ETFs with higher assets under management and tighter spreads.
Thematic Fit: Make sure the ETF aligns with your overall investment thesis and time horizon.
Who Should Invest in Space ETFs?
These funds are ideal for:
Growth investors seeking frontier innovation themes
Those comfortable with sector concentration and volatility
Long-term investors (5+ years) with a high-risk tolerance
Individuals looking to diversify beyond traditional tech or defense funds
They may not be suitable for:
Income-seeking investors
Conservative or short-term traders
Portfolios needing low volatility or principal protection
Final Thoughts: Are Space ETFs Worth It in 2025?
The space economy is expanding rapidly, driven by global demand for satellite connectivity, private launch services, and national security applications. Space ETFs offer investors an exciting, relatively low-cost way to tap into this future-facing sector.
While no space ETF is perfect, each offers a different mix of exposure, from the broader innovation lens of ARKX to the satellite-centric focus of UFO. For growth investors willing to accept the risks of a high-innovation theme, space ETFs can be a valuable satellite in a well-diversified portfolio.