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Best Of

Best Space Exploration & Defense ETFs in 2026

ETFs investing in the space economy — rockets, satellites, and the aerospace and defense firms behind them.

Data updated August 2026 · 22 ETFs

ETFs listed22
Avg yield3.18%
Avg expense ratio0.75%

Who this page is for

Best for

  • Thematic investors who want exposure to the growing space and satellite economy
  • Growth-oriented holders with a multi-year horizon and tolerance for volatility
  • Investors who prefer a diversified basket over a single launch or satellite stock

Not a fit for

  • Income seekers — space ETFs yield little; a few aerospace-defense funds pay modest dividends
  • Anyone needing a pure space-exploration bet; many funds lean on established defense primes
  • Investors uncomfortable with government-budget and contract-cycle risk

Analysis

Space ETFs span a surprisingly wide spectrum, and knowing where a fund sits on it matters more than the label. At one end are pure space-economy funds (ARKX, UFO) that reach for satellite operators, launch providers, and next-generation space startups — higher risk, higher potential, more volatile. At the other end are aerospace-and-defense ETFs (ITA, PPA, XAR) anchored by established primes like Lockheed Martin, RTX, and Boeing, which behave more like a defense-sector fund with steadier revenue and even modest dividends. Both are legitimate ways to play the theme, but they carry different risk and return profiles, so check the holdings before you buy. The space economy is a real long-term growth story — falling launch costs, exploding satellite demand, and rising defense budgets — yet it remains sensitive to government contracts and budget cycles. Treat a space ETF as a long-horizon satellite position sized to the volatility you're willing to accept.

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Top picks

Top 3 space ETFs by assets under management.

Yield distribution

0-2%202-5%05-8%08-12%012%+2

Expense ratio distribution

0.20-0.50%50.50-0.75%30.75-1.00%121.00%+2

Income projection

Estimated income if the current average distribution rate of 3.18% held for a full year with share prices unchanged. Distribution rate is not total return—a fund can pay a large distribution while its share price falls—so treat these as an upper-bound illustration, not a forecast.

InvestmentAnnual incomeMonthly incomeWeekly income
$10,000$318$26$6
$25,000$794$66$15
$50,000$1,588$132$31
$100,000$3,177$265$61

Issuer breakdown

Distribution of ETFs by fund issuer. Larger issuers often offer lower expense ratios and higher liquidity.

Direxion3
State Street2
Tuttle Capital Management2
Corgi Strategies2
iShares1
Invesco1
Tema ETFs1
ARK Invest1

How this list is built

"Best" here means the selection rule below, applied to our own data — not an opinion poll and not a prediction:

  • Universe: every security in our database matching this category — 22 qualified as of August 2026.
  • Exclusions: liquidated, delisted and renamed funds drop out automatically; a renamed fund's successor appears in its place.
  • Ordering: assets under management, largest first.
  • Cap: none — all 22 matching funds are listed.
  • Independence: no placement on this page is paid, sponsored, or influenced by a fund issuer.

All 22 ETFs

Ticker Name Issuer Yield Expense ratio AUM Frequency
ITAiShares U.S. Aerospace & Defense ETFiShares0.26%0.40%$14.8BQuarterly
PPAInvesco Aerospace & Defense ETFInvesco0.29%0.58%$8.7BQuarterly
XARSPDR S&P Aerospace & Defense ETFState Street0.08%0.35%$6.4BQuarterly
NASATema Space Innovators ETFTema ETFs0.75%$1.3BNone
ARKXARK Space Exploration & Innovation ETFARK Invest0.75%$861MNone
MISLFirst Trust Indxx Aerospace & Defense ETFFirst Trust0.12%0.60%$805MQuarterly
UFOProcure Space ETFProcure0.24%0.75%$587MQuarterly
DFENDirexion Daily Aerospace & Defense Bull 3X Shares Direxion Daily AerospaceDirexion0.10%0.97%$416MQuarterly
ASTXTradr 2X Long ASTS Daily ETFTradr1.30%$371MNone
ROKTSPDR S&P Kensho Final Frontiers ETFState Street0.16%0.45%$228MQuarterly
MARSRoundhill Space & Technology ETFRoundhill Investments0.75%$57MNone
WARPVanEck Space ETFVanEck0.50%$39MNone
LOFFDirexion Daily SpaceX Bull 2X ETFDirexion1.57%0.97%$36M
SPCITuttle Capital Space Industry Income Blast ETFTuttle Capital Management30.92%0.99%$12MWeekly
UFODTuttle Capital UFO Disclosure ETFTuttle Capital Management0.99%$3MNone
XSHPKurv SpaceX Enhanced Income ETFKurv36.15%0.99%$3MMonthly
XSPCVegaShares SpaceX & Beyond Earth ETFVegaShares0.75%$2MNone
GALXVistaShares Space Supercycle® ETFVistaShares0.75%$2MAnnual
ASTGLeverage Shares 2X Long ASTS Daily ETFLeverage Shares0.99%$284,777
RKXCorgi RKLB 2x Daily ETFCorgi Strategies0.45%$200,576
ASTTCorgi ASTS 2x Daily ETFCorgi Strategies0.45%$173,991
LOFDDirexion Daily SpaceX Bear 2X ETFDirexion1.07%Quarterly

Frequently asked questions

What are the best space exploration & defense ETFs?

This page lists the top 22 ETFs in this category ranked by key metrics. The list includes funds from issuers like iShares, Invesco, State Street, Tema ETFs, ARK Invest and more.

How often is this list updated?

The data on this page is refreshed regularly using the latest available distribution rates, expense ratios, and AUM figures. Last updated August 2026.

What is the average yield of these ETFs?

The average distribution yield across the 22 ETFs on this list is 3.18%. Individual yields range from 0.08% to 36.15%.

What's the difference between a space ETF and an aerospace-defense ETF?

Pure space ETFs (like ARKX and UFO) target satellite, launch, and space-technology companies and tend to be more volatile. Aerospace-and-defense ETFs (like ITA, PPA, and XAR) are dominated by large defense contractors, offering steadier revenue, lower volatility, and sometimes modest dividends. Many investors consider both under the "space" umbrella.

Do space ETFs pay dividends?

The pure space-exploration funds pay little to nothing, since many holdings are growth-stage companies. The aerospace-and-defense-heavy funds pay modest dividends because their large-cap defense holdings are established, profitable dividend payers.

Are space ETFs a good investment?

They offer diversified exposure to a genuine long-term growth theme — cheaper launches, more satellites, and rising defense spending — but returns depend heavily on government contracts and budget cycles, and the pure-play names are volatile. They suit growth investors with a multi-year horizon, not income seekers.

Looking for the complete list?

This page is our editorial shortlist, selected and ordered by the rule above. For every fund we track in this category, with live filtering, see the full space etfs list.

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The metrics and risks behind this list, explained in the Academy.

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