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 October 2026 · 25 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
The space exploration and defense category blends broad aerospace-and-defense index funds with niche, thematic, and leveraged products. Among the top 10 funds shown, iShares' ITA ($12.1B), Invesco's PPA ($7.4B), and State Street's XAR ($5.3B) represent the largest and most established vehicles, all tracking traditional aerospace and defense indexes with quarterly distributions.
AI-generated analysis — AI can make mistakes. Verify important information independently. Not investment advice. AI risk disclosure
Risks specific to this category
- Concentration in one theme: most funds here focus on space, so the whole list tends to draw down together when that corner of the market falls out of favor — diversification across the table is lower than the fund count suggests.
- Expense drag: expense ratios in this group average 0.73% — several times what broad index funds charge — and that cost compounds directly against total return.
- Liquidity and closure risk: 15 of the 25 funds listed hold under $100M in assets, and small funds tend to trade with wider bid-ask spreads and face a higher risk of liquidation.
- Short track records: 17 of the 25 funds launched within the last three years, so their distribution history is too short to judge payout durability across a full market cycle.
- Distributions are not contractual: each payout is declared period by period, so the yields on this page can fall without notice when portfolio income, option premium, or fund policy changes.
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Top picks
Top 3 space ETFs by assets under management.
Yield distribution
Expense ratio distribution
Income projection
Estimated income if the current average distribution rate of 5.04% 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.
| Investment | Annual income | Monthly income | Weekly income |
|---|---|---|---|
| $10,000 | $504 | $42 | $10 |
| $25,000 | $1,260 | $105 | $24 |
| $50,000 | $2,520 | $210 | $48 |
| $100,000 | $5,041 | $420 | $97 |
Issuer breakdown
Distribution of ETFs by fund issuer, showing how concentrated or varied the sponsor lineup is.
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 — 27 qualified as of October 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: the top 25 are shown; 2 further matching funds are not listed here. Use the screener for the complete set.
- Independence: no placement on this page is paid, sponsored, or influenced by a fund issuer.
All 25 ETFs
| Ticker | Name | Issuer | Yield | Expense ratio | AUM | Frequency |
|---|---|---|---|---|---|---|
| ITA | iShares U.S. Aerospace & Defense ETF | iShares | 0.16% | 0.37% | $12.1B | Quarterly |
| PPA | Invesco Aerospace & Defense ETF | Invesco | 0.42% | 0.58% | $7.4B | Quarterly |
| XAR | SPDR S&P Aerospace & Defense ETF | State Street | 0.23% | 0.35% | $5.3B | Quarterly |
| NASA | Tema Space Innovators ETF | Tema ETFs | — | 0.75% | $1.3B | None |
| ARKX | ARK Space Exploration & Innovation ETF | ARK Invest | — | 0.75% | $747M | None |
| MISL | First Trust Indxx Aerospace & Defense ETF | First Trust | 0.07% | 0.60% | $691M | Quarterly |
| UFO | Procure Space ETF | Procure | 0.04% | 0.75% | $513M | Quarterly |
| DFEN | Direxion Daily Aerospace & Defense Bull 3X Shares Direxion Daily Aerospace | Direxion | 0.10% | 0.96% | $282M | Quarterly |
| ASTX | Tradr 2X Long ASTS Daily ETF | Tradr | — | 1.30% | $175M | None |
| ROKT | SPDR S&P Kensho Final Frontiers ETF | State Street | 0.20% | 0.45% | $165M | Quarterly |
| LOFF | Direxion Daily SpaceX Bull 2X ETF | Direxion | 0.62% | 0.97% | $76M | Quarterly |
| WARP | VanEck Space ETF | VanEck | — | 0.50% | $42M | None |
| MARS | Roundhill Space & Technology ETF | Roundhill Investments | — | 0.75% | $40M | None |
| YSPC | YieldMax SPCX Option Income Strategy ETF | YieldMax | 54.58% | 1.01% | $37M | Weekly |
| ORBX | Global X Space Tech ETF | Global X | — | 0.50% | $36M | None |
| XSHP | Kurv SpaceX Enhanced Income ETF | Kurv | 35.43% | 0.99% | $9M | Monthly |
| SPCI | Tuttle Capital Space Industry Income Blast ETF | Tuttle Capital Management | 34.17% | 0.99% | $7M | Weekly |
| GALX | VistaShares Space Supercycle® ETF | VistaShares | — | 0.75% | $3M | Annual |
| UFOD | Tuttle Capital UFO Disclosure ETF | Tuttle Capital Management | — | 0.99% | $3M | None |
| LOFD | Direxion Daily SpaceX Bear 2X ETF | Direxion | — | 0.97% | $2M | Quarterly |
| XSPC | VegaShares SpaceX & Beyond Earth ETF | VegaShares | — | 0.75% | $2M | None |
| FSPC | First Trust Bloomberg Space Economy ETF | First Trust | — | 0.65% | $2M | None |
| WSPC | WisdomTree Space Economy Fund | WisdomTree | — | 0.75% | $1M | None |
| XWNG | Amplify Top 10™ Space ETF | Amplify ETFs | — | 0.49% | $1M | None |
| RKX | Corgi RKLB 2x Daily ETF | Corgi Strategies | — | 0.45% | $661,427 | None |
Frequently asked questions
What are the best space exploration & defense ETFs?
This page lists the top 25 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 October 2026.
What is the average yield of these ETFs?
The average distribution yield across the 25 ETFs on this list is 5.04%. Individual yields range from 0.04% to 54.58%.
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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