How to trade or invest in the space stocks and ETFs to watch

Once exclusively domain the domain of science fiction novels, space has recently emerged as a viable asset class for modern investors. Space used to be the purview of governments and a handful of aerospace giants, but is now a growing universe of publicly traded companies, ETFs, and soon, the most anticipated IPO in stock market history.

For context, the commercial space industry has undergone a structural shift. Reusable rockets have slashed the cost of reaching orbit. Satellite miniaturisation has opened new markets in broadband, defence and Earth observation. And perhaps as importantly, private capital has flooded in, resulting in a sector that is growing fast, covering multiple investable sub-themes, and attracting more attention from mainstream investors than at any point in its history.

This guide covers what the space economy looks like today, the key stocks and ETFs to consider, and how to get exposure with us.

What is the space economy?

The space economy encompasses every business that generates revenue from space-related activity, rocket manufacturers launching satellites to companies operating those satellites for broadband or GPS services, defence contractors supporting government space programmes and the nascent space tourism sector.

The global space economy is currently valued at over $630 billion. Morgan Stanley projects it could reach $1 trillion in annual revenue within the next decade, driven by three core forces:

1. Reusable launch vehicles that have cut costs dramatically
2. Miniaturised satellites that can be mass produced and deployed in large constellations
3. Data analytics businesses that turn satellite imagery into commercial products

Successful orbital launches grew at a 25% compound annual rate between 2020 and 2025, with the number of objects deployed to orbit rising at 20% per year over the same period. 

Best space stocks to watch

Individual space stocks give you targeted exposure to companies directly involved in the industry. 

Here are the key names, though please note that these are highly speculative, volatile shares. 

SpaceX (IPO expected June/July 2026)

SpaceX is the most dominant force in the commercial space industry, holding more than 60% of the global commercial launch market and operating Starlink, the world's largest satellite broadband network with over 10 million subscribers.

It’s heading for a Nasdaq listing expected in late June or early July 2026, targeting a valuation of between $1.75 trillion and $2 trillion and aiming to raise $75 billion, which would make it the largest IPO in stock market history.

SpaceX has committed to allocating up to 30% of shares to retail investors, and its advisers are actively working with UK brokers to secure allocations for clients. As with any large IPO, the valuation prices in significant future growth. But the expected dual-class share structure also limits retail investor influence on governance, with historical data showing that most mega-IPOs underperform the S&P 500 in their first year. 

The public S-1 prospectus will be the most important document for analysing the offering. Nothing in this section constitutes personal investment advice or a recommendation to buy SpaceX shares.

Rocket Lab (RKLB)

Rocket Lab has established itself as perhaps one of the more credible pure-play launch company currently trading on public markets. The company operates its Electron rocket for small satellite launches, with its larger Neutron rocket in development. Rocket Lab generated $602 million in revenue in 2025, representing 38% year-on-year growth, and holds a backlog of $1.85 billion, up 73% year-over-year. 

Momentum has continued into 2026, with Q1 revenue of $200.3 million beating its own guidance and representing 63% year-on-year growth. It is currently one of the top holdings in both major space ETFs easily accessible to UK investors.

ARK Space & Defence Innovation UCITS ETF

The UCITS version of ARK's space ETF focuses on companies engaged in space exploration and innovation. Actively managed by ARK Investment Management, it targets between 35 and 55 holdings, with top positions including Rocket Lab and L3Harris Technologies. As an actively managed fund, its positioning shifts as ARK's analysts update their views.

VanEck Space Innovators UCITS ETF

The VanEck Space Innovators ETF is a UK-listed UCITS fund offering targeted exposure to companies at the forefront of space technology and innovation. It’s eligible for ISA investment, making it one of the most accessible routes to the space theme for UK investors.

How to analyse space stocks and ETFs

Whether you are looking at an individual stock or an ETF, the same analytical principles apply.

Fundamental analysis means assessing a company's financials, including revenue, earnings, growth rate, backlog, and debt, alongside the competitive dynamics of its market. For early-stage space companies, revenue growth and backlog size often matter more than current profitability, since many are still in growth-investment mode.

Read our guide to fundamental analysis of stocks for a full walkthrough.

Technical analysis looks at price charts, indicators, and historical patterns to identify potential entry and exit points. It is particularly useful in volatile sectors like space, where sentiment can move prices sharply around news events.

Our 10 trading indicators guide is a good starting point.

Risk management matters more in high-growth sectors than almost anywhere else. Understanding your risk tolerance before opening a position is essential, and considering how a space allocation fits within a diversified portfolio is equally important.