Space ETFs are exchange-traded funds that invest in publicly-listed companies across the space economy. The two most prominent are ARK Space Exploration & Innovation ETF (ARKX) and Procure Space ETF (UFO). These funds hold a mix of pure-play space companies (Rocket Lab, Planet Labs) and diversified aerospace/defense firms with significant space divisions (Lockheed Martin, L3Harris, Northrop Grumman).
Space ETFs provide retail investors with diversified exposure to the sector without requiring them to pick individual winners in an industry where many startups fail. However, their composition varies significantly: some hold mostly traditional defense contractors, while others focus on pure-play NewSpace companies. Total assets under management in dedicated space ETFs remain relatively small, but the sector's investment profile has grown as companies like Rocket Lab and SpaceX (through secondary shares) have attracted mainstream investor attention.