Despite the major concerns many investors have about its large valuation, SpaceX NASDAQ: SPCX has been on a meteoric rise in its early days of trading. Unreasonable valuation concerns—combined with unusually low float and the potential for significant pressure on insiders to sell shares down—mean that many investors who might be tempted to take a position in SPCX may choose not to, at least not after the immediate aftermath of the largest-ever IPO.
The entire space industry may end up getting a boost from the excitement over SpaceX, which means it could be a good time for investors to build exposure to other stocks without the same level of risk as the new giant. Space exchange-traded funds (ETFs) can help reduce risk by accessing a broad basket of stocks within an industry. Before some of these funds balance out, they will likely provide access to the broader industry without directly holding SpaceX shares—although investors should, if and when, add a SpaceX position to their portfolio.
UFO is an All-Purpose Real Estate Fund with Attractive Diversification and Returns
Procure Space ETF NASDAQ: UFO is a go-to fund with assets of approximately $1 billion and a solid one-month trading volume of over $2 million. The fund appears likely to remain highly liquid, making it a good option for investors who want the flexibility to move in and out of a position—or adjust its size—often as the industry continues to evolve.
Buy Space ETF Today
Buy the Space ETF
Starting at 11:45 AM Eastern
- 52 week interval
- $26.48
▼
$68.21
- Dividend Yield
- 0.32%
- Assets Under Administration
- $951.41 million
UFO's focus on space names in all developed markets means that its 50 or so positions can capture technological advances wherever they occur. US companies own about 70% of the portfolio, but investors in UFO will gain exposure to firms in Canada, the Netherlands, Japan, and many other parts of the world.
The UFO mandate is also broad enough to allow it to benefit from developments throughout the space industry, from satellite companies to ground and rocket manufacturers to telecommunications firms and more.
As such, the portfolio is fairly divided between industrial and telecommunications companies, although it also holds shares in other sectors as well.
With an average expense ratio of 0.75%, UFO is not the cheapest fund available, but its performance this year may make the expense ratio worthwhile: this ETF has returned nearly 30% year-to-date (YTD) and has nearly doubled in the past 12 months.
Space and Security Combine to Make a Market with ARKX
Another actively managed UFO alternative is the ARK Space & Defense Innovation ETF Bats: ARKXcoming in with a flat annual fee of 0.75%. ARKX is also compared on the basis of assets and trading volume. What sets this fund apart is a small portfolio of 43 companies involved in space exploration or defense—this includes autonomous vehicle and battery technology firms as well as rocket and robot makers, 3D printing companies, and more.
ARK Space Exploration & Innovation ETF Today
ARK Space Exploration & Innovation ETF
Starting at 11:48 AM Eastern
- 52 week interval
- $21.88
▼
$37.89
- Assets Under Administration
- $1.09 billion
Because of this, some firms in the ARKX portfolio are not playground stocks—the top position, for example, is semiconductor giant Advanced Micro Devices Inc. NASDAQ: AMD.
However, ARKX is not limited to domestic stocks and has some international positions, but with a much smaller percentage than UFO (ARKX's portfolio is about 90% US companies).
This may be a modest trade, as ARKX has also shown strong performance in recent months. This fund has returned 20% YTD and almost 60% in the last year. It may therefore be attractive to investors seeking exposure to the space with less of a subject focus on that area than UFO provides.
Inexpensive Newcomer Untested So Far
Global X Space Tech ETF NASDAQ: ORBX launched in April 2026 and has only $58 million in assets, making it much smaller—and riskier—than the other funds above. However, it also comes with a low fee of 0.50% per year. ORBX focuses on the index of global space businesses involved in developing rockets and launch systems, providing technology and components, delivering satellites and services, and so on.
Global X Space Tech ETF today
Global X Space Tech ETF
Starting at 11:45 AM Eastern
- 52 week interval
- $48.32
▼
$79.71
- Assets Under Administration
- $57.56 million
ORBX has a dozen positions, but about 30% of the portfolio is held by just two companies—Rocket Lab Corp. NASDAQ: RKLB and AST SpaceMobile Inc. NASDAQ: ASTS. Domestic stocks account for about 78% of the basket, followed by Japanese and Canadian names, as well as companies from many other countries.
With a much smaller track record than UFO or ARKX, ORBX may be difficult to test; its all-time return is modestly good, but that can certainly change over time.
With the launch of SpaceX, investors may want to watch how this low-cost approach adapts going forward.
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