The Space Sector Just Printed Money — Here's Why Your $1K Might Want In

Space economy is having a moment. We’re talking explosive growth: from $630B today to $1.8T by 2035 according to McKinsey. That’s a 3x expansion in just over a decade.

The play? ARK’s Space Exploration ETF (ARKX) has been quietly crushing it. Up 52% YoY and 38% in 2025, while the S&P 500 is sitting at 13.3% and 13.5% respectively. That’s a 4x outperformance gap.

What’s Actually in This Thing?

The fund holds 25 stocks focused on satellites, launchers, GPS tech, and aerospace infrastructure. Top holdings pack serious firepower:

• Kratos Defense (KTOS) — 10.3% (satellite + drone plays)
• Rocket Lab (RKLB) — 8.6% (rocket systems)
• AeroVironment (AVAV) — 8.5% (autonomous systems)
• L3Harris (LHX) — 7.2% (NASA contractors)
• Teradyne (TER) — 6.4% (test systems)

Top 10 holdings account for 64% of assets. AUM sits at $448M.

The Bull Case

✓ Satellite connectivity explosion globally ✓ Mobile positioning/navigation tech uptick ✓ AI/ML applications ramping hard ✓ Diversified exposure (25 stocks = lower single-name risk)

The Reality Check

Expense ratio is 0.75% — higher than standard ETFs but defensible given performance. Real risk: crowded space (literally) with massive competition and tech overlap between firms.

Bottom line: If you’ve got $1K dry powder and a multi-year horizon, this could be worth a deeper look. But it’s definitely a thematic bet, not a boring blue-chip play.