The space ETF market is going through its own version of a launch sequence. Investors are moving away from the old guard of aerospace and defense giants and toward the companies actually building the commercial infrastructure of the space economy.
This shift is happening because the space business itself is changing fast. In 2025, there were a record 296 launches that put 4,434 satellites into orbit, a 65% jump from 2024, according to the Satellite Industry Association. Commercial satellite activity alone brought in $303 billion in revenue, which is 71% of the entire global space business.
That kind of growth creates demand for ETFs that give you more precise exposure to the companies building this new space economy, not just the ones with the biggest government contracts.
From Lockheed Martin to Rocket Lab
Traditional space ETFs have often been a mix of new space companies and large aerospace and defense contractors. For example, the First Trust Bloomberg Space Economy ETF (NYSE:FSPC) has 55.5% of its portfolio in aerospace and defense, with major holdings including Thales, Mitsubishi Heavy Industries, Northrop Grumman Corporation (NYSE:NOC), and Safran. It also held newer names like SpaceX (NASDAQ:SPCX) and AST SpaceMobile, Inc (NASDAQ:ASTS).
The Procure Space ETF (NASDAQ:UFO), meanwhile, has 67 holdings. Its largest positions included Trimble Inc (NASDAQ:TRMB), Garmin Ltd (NYSE:GRMN), Viasat Inc (NASDAQ:VSAT), SpaceX, AST SpaceMobile, and Rocket Lab Corp (NASDAQ:RKLB).
This distinction matters because the economics of "old space" and "new space" are increasingly different. Traditional aerospace has historically been dominated by large government contracts, expensive systems, and long development cycles. New-space companies are increasingly focused on reusable launch systems, satellite broadband, direct-to-device connectivity, Earth observation, and other commercially scalable services.
ETF Issuers Are Following the Shift
The latest products show how quickly the ETF industry is adapting. Tema launched the Space Innovators ETF (NYSE:NASA) in March, positioning it as a pure-play vehicle for the modern space economy. The actively managed fund had $1.08 billion in assets.
Roundhill also launched the Space & Technology ETF (BATS:MARS), focusing on companies generating at least half of their revenue or profits from space infrastructure and technology. Its portfolio includes Rocket Lab, AST SpaceMobile, EchoStar Corp (NASDAQ:ECHO), and Planet Labs PBC (NYSE:PL).
The newest development is even more targeted: Seraphim Space launched a UCITS ETF designed specifically around the "new space economy," with roughly 23 companies including SpaceX, Rocket Lab, AST SpaceMobile, and HawkEye 360.
That is a notable evolution from simply owning aerospace stocks.
SpaceX Is Accelerating the ETF Race
SpaceX has become an important catalyst for the public-market space trade following its IPO. UFO had added SpaceX to its portfolio in June, making it the fund's largest holding at the time.
The IPO has also highlighted a problem for space ETFs: the largest and most commercially important companies are not necessarily public. That is pushing ETF issuers toward different solutions, including indirect exposure to private companies, concentrated portfolios of recently listed space companies, and actively managed strategies.
Beyond the Launchpad
The biggest opportunity in the space economy may increasingly lie beyond the rocket. McKinsey estimates the global space economy could reach $1.8 trillion by 2035, up from $630 billion in 2023. The firm expects commercial spending to outpace government spending by at least 2-to-1 in most major space markets during the second half of this decade, including communications, launch, and positioning, navigation and timing.
Communications is expected to be the biggest commercial market. McKinsey forecasts $258 billion in commercial communications spending between 2025 and 2029, versus $35 billion from governments. Commercial launch spending is projected at $85 billion over the same period, nearly twice the $44 billion government market.
For ETFs, that creates a broader investment universe than launch companies alone. Satellite connectivity, direct-to-device services, navigation, Earth-observation data, and space-based communications could become as important to the New Space trade as rockets themselves.
Private investment is following the same direction. The ESA said global private investment in space ventures surged 60% in 2025, driven by a 177% growth in U.S. activity, while Seraphim reported a record $8 billion of SpaceTech investment in the first quarter of 2026 alone.
The ETF market is therefore moving toward a more granular definition of space. The next generation of space ETFs may look less like aerospace funds and more like technology-infrastructure funds, with rockets, satellites, communications networks, and data services at the core.
