Funds · 2026

Best Space ETFs in 2026

Four ETFs offer the most popular space-industry exposure. Each makes a different bet — pure-play space, growth + adjacent themes, defense-prime exposure, or equal-weighted aerospace. Here's how they compare.

Quick answer

The best space ETF depends on what you want: UFO (Procure Space) for the most pure-play space exposure; ARKX (ARK Space Exploration) for actively-managed thematic + broader "space-adjacent" stocks; ITA (iShares Aerospace & Defense) for defense-prime heavy exposure with the lowest spread; XAR (SPDR Aerospace & Defense) for an equal-weighted aerospace + space tilt at the cheapest expense ratio (0.35%).

The four ETFs, side by side

Procure Space ETF

UFO

Procure Holdings · inception 2019

Expense
0.75%
AUM
~$80M
Holdings
~35
Top holdings
  • · Iridium Communications (IRDM)
  • · Rocket Lab (RKLB)
  • · Maxar Technologies (MAXR)
  • · Planet Labs (PL)
  • · AST SpaceMobile (ASTS)
Pros
  • + Most space-focused ETF on the US market
  • + Heavy weighting toward pure-play space companies (~80%)
  • + Includes both US and international space stocks
Cons
  • − Smaller AUM means wider bid-ask spreads
  • − Higher expense ratio than ITA/XAR
  • − Concentrated bet — bigger swings
Best for: Investors who want maximum pure-play space exposure without picking individual stocks.

ARK Space Exploration ETF

ARKX

ARK Invest (Cathie Wood) · inception 2021

Expense
0.75%
AUM
~$300M
Holdings
~40
Top holdings
  • · Kratos Defense (KTOS)
  • · Trimble (TRMB)
  • · Rocket Lab (RKLB)
  • · AeroVironment (AVAV)
  • · L3Harris (LHX)
Pros
  • + Actively managed — ARK adjusts to thesis changes
  • + Broader "space-adjacent" mix (data, robotics, 3D printing)
  • + Stronger thematic conviction
Cons
  • − Higher portfolio turnover
  • − Less pure-play space than UFO
  • − ARK's historic volatility on growth names
Best for: Investors who buy into ARK's "fourth industrial revolution" thesis and want active management.

iShares U.S. Aerospace & Defense ETF

ITA

BlackRock · inception 2006

Expense
0.40%
AUM
~$5B+
Holdings
~35
Top holdings
  • · Lockheed Martin (LMT)
  • · Northrop Grumman (NOC)
  • · RTX (RTX)
  • · Boeing (BA)
  • · L3Harris (LHX)
Pros
  • + Lowest expense ratio of the space-exposed ETFs
  • + Massive AUM means tight spreads
  • + Heavy weighting in defense primes which dominate gov't space contracts
Cons
  • − Less than 20% of holdings are space-focused
  • − Diluted by traditional aerospace (Boeing 737, Airbus)
  • − Misses smaller pure-play space companies
Best for: Investors who want space exposure through the lens of defense contractor revenue.

SPDR S&P Aerospace & Defense ETF

XAR

State Street · inception 2011

Expense
0.35%
AUM
~$2B
Holdings
~30
Top holdings
  • · Spirit AeroSystems (SPR)
  • · Boeing (BA)
  • · TransDigm (TDG)
  • · Mercury Systems (MRCY)
  • · Howmet Aerospace (HWM)
Pros
  • + Equal-weighted means smaller companies have more impact
  • + Lowest expense ratio
  • + Tilts toward suppliers + smaller-cap defense
Cons
  • − Same dilution problem as ITA — broad aerospace, not pure space
  • − Some holdings have minimal space revenue
  • − Lower correlation with space-only news
Best for: Investors who want equal-weighted aerospace + space exposure with a smaller-cap tilt.

Frequently asked about space ETFs

What is the best space ETF in 2026?
The best space ETF depends on what you want exposure to. Procure Space ETF (UFO) is the most pure-play space ETF, holding about 80% space companies. ARK Space Exploration ETF (ARKX) is the best for thematic active management. iShares Aerospace & Defense (ITA) and SPDR Aerospace & Defense (XAR) have the lowest expense ratios but include heavy defense and traditional aerospace exposure.
How are UFO, ARKX, ITA, and XAR different?
UFO is the most pure-play space ETF (~80% space holdings). ARKX is actively managed by ARK Invest with broader "space-adjacent" exposure (robotics, data, 3D printing). ITA and XAR are aerospace-and-defense ETFs that include space companies but are heavily weighted toward defense primes like Lockheed Martin and Northrop Grumman.
What's the expense ratio of space ETFs?
Space-focused ETFs charge between 0.35% and 0.75% in expense ratio. UFO and ARKX both charge 0.75%, while the broader aerospace + defense ETFs ITA (0.40%) and XAR (0.35%) are cheaper because of their scale and broader mandate.
Does any ETF give me direct exposure to SpaceX?
No publicly available ETF holds SpaceX shares, because SpaceX is still private as of May 2026 (S-1 filed April 2026, June 2026 IPO target). Investors who want SpaceX exposure currently use private secondary markets, indirect proxies (Iridium for Starlink revenue tier), or ETFs that may add SpaceX after its IPO.
Should I just buy individual space stocks instead?
That depends on conviction. Individual stocks like Rocket Lab (RKLB), Planet Labs (PL), AST SpaceMobile (ASTS), and Iridium (IRDM) offer concentrated bets with single-name risk. ETFs offer diversification but average across companies you may not want. Many investors hold both — a core ETF position plus targeted single-stock bets.

Not investment advice. The ETFs described here are presented as a reference and comparison aid only. Holdings, expense ratios, and AUMs were accurate at last review (May 2026) and change over time. Always verify current data from issuer prospectuses before investing.

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