Space Economy Boom: Is the $1K Bet Worth It?

The space industry is about to explode. McKinsey projects the market will balloon from $630B in 2023 to $1.8T by 2035—nearly 3x growth. That’s satellites, GPS, launch systems, and everything else flying beyond Earth’s surface.

Ark Invest’s space ETF (ARKX) is one way to play this trend. The fund has crushed the market lately:

• +52% past year (vs S&P 500’s 13.3%)
• +38% in 2025 (vs S&P 500’s 13.5%)

Top holdings include Rocket Lab (rocket launches), Kratos Defense (satellite tech), and L3Harris (NASA engines). The fund holds 25 stocks across the space value chain, which spreads risk nicely.

The tailwinds are real: global satellite connectivity ramping up, AI/ML driving demand for positioning tech, and growing commercial space activity. But here’s the catch—the space industry is getting crowded, and many companies compete on overlapping tech.

The math: ARKX is up 33% since launch in March 2021, and 52% in the past year. That’s serious outperformance. With a 0.75% expense ratio (slightly high but defensible), it’s worth a look if you’ve got $1K burning a hole and can stomach volatility.

Thing is, sector momentum can reverse fast. Do your own due diligence before buying the hype.