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 July 2026 · 16 ETFs
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.
Top picks
Top 3 space ETFs by assets under management.
Yield distribution
Expense ratio distribution
Income projection
Estimated annual, monthly, and weekly income based on the average yield of 6.86% across these 16 ETFs. For illustration only—actual income will vary.
| Investment | Annual income | Monthly income | Weekly income |
|---|---|---|---|
| $10,000 | $686 | $57 | $13 |
| $25,000 | $1,715 | $143 | $33 |
| $50,000 | $3,431 | $286 | $66 |
| $100,000 | $6,862 | $572 | $132 |
Issuer breakdown
Distribution of ETFs by fund issuer. Larger issuers often offer lower expense ratios and higher liquidity.
All 16 ETFs
| Ticker | Name | Issuer | Yield | Expense ratio | AUM | Frequency |
|---|---|---|---|---|---|---|
| ITA | iShares U.S. Aerospace & Defense ETF | iShares | 0.27% | 0.40% | $13.9B | Quarterly |
| PPA | Invesco Aerospace & Defense ETF | Invesco | 0.31% | 0.58% | $8.0B | Quarterly |
| XAR | SPDR S&P Aerospace & Defense ETF | State Street | 0.09% | 0.35% | $6.3B | Quarterly |
| ARKX | ARK Space Exploration & Innovation ETF | ARK Invest | — | 0.75% | $1.4B | None |
| NASA | Tema Space Innovators ETF | Tema ETFs | — | 0.75% | $1.3B | None |
| UFO | Procure Space ETF | Procure | 0.49% | 0.75% | $1.0B | Quarterly |
| MISL | First Trust Indxx Aerospace & Defense ETF | First Trust | 0.26% | 0.60% | $829M | Quarterly |
| DFEN | Direxion Daily Aerospace & Defense Bull 3X Shares Direxion Daily Aerospace | Direxion | 0.11% | 0.97% | $394M | Quarterly |
| ASTX | Tradr 2X Long ASTS Daily ETF | Tradr | — | 1.30% | $373M | None |
| ROKT | SPDR S&P Kensho Final Frontiers ETF | State Street | 0.17% | 0.45% | $247M | Quarterly |
| MARS | Roundhill Space & Technology ETF | Roundhill Investments | — | 0.75% | $67M | None |
| WARP | VanEck Space ETF | VanEck | — | 0.50% | $47M | None |
| SPCI | Tuttle Capital Space Industry Income Blast ETF | Tuttle Capital Management | 61.73% | 0.99% | $13M | Weekly |
| UFOD | Tuttle Capital UFO Disclosure ETF | Tuttle Capital Management | — | 0.99% | $3M | None |
| XSHP | Kurv SpaceX Enhanced Income ETF | Kurv | 46.36% | 0.99% | $2M | Monthly |
| SPCL | Defiance Daily 2X Space ETF | Defiance ETFs | — | 1.31% | — | None |
Frequently asked questions
What are the best space exploration & defense ETFs?
This page lists the top 16 ETFs in this category ranked by key metrics. The list includes funds from issuers like iShares, Invesco, State Street, ARK Invest, Tema ETFs 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 July 2026.
What is the average yield of these ETFs?
The average distribution yield across the 16 ETFs on this list is 6.86%. Individual yields range from 0.00% to 0.27%.
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.
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