Cathie Wood's stock picks receive considerable scrutiny, but investors are also acutely focused on the exchange-traded funds (ETFs) that Ark Invest manages, such as the ARK Space Exploration & Innovation ETF (ARKX +1.68%).
Launched in March 2021, the ARKX ETF is an ideal opportunity for investors looking to benefit from the burgeoning space economy. The consulting firm McKinsey projects that the space economy could soar from $630 billion in 2023 to $1.8 trillion by 2035.
NYSEMKT: ARKX
Key Data Points
What is the ARK Space Exploration & Innovation ETF?
One of several ETFs under the umbrella of Ark Invest's products, the ARKX ETF is focused on providing exposure to companies operating in the final frontier. According to Ark Invest, the fund "seeks to provide exposure to companies involved in space-related businesses like reusable rockets, satellites, drones, and other orbital and sub-orbital aircrafts."
Operating in space is no small feat, so almost all the companies represented in the ETF are associated with advanced technologies. About 35% of the stocks in the ETF, for example, are leaders in autonomous mobility (the largest sort of tech in the fund), followed by intelligent devices and advanced battery technologies, representing 14.3% and 13.3%, respectively.
Large-cap stocks (defined by Ark Invest as those with market capitalizations of $10 billion to $100 billion) are the most common type found in the ETF, representing 64% of the portfolio. Mega-caps (market caps with more than $100 billion) and small-cap stocks (market caps of $300 million to $2 billion) are the next most common, at 22.5% and 7.3%, respectively.
Although the ETF includes both telecommunications and consumer discretionary stocks, industrials and information technology stocks account for most of the ETF, representing 62.2% and 26%, respectively.
How to buy the ARK Space Exploration & Innovation ETF
Whether you have or haven't taken flight with an ETF investment, there are some elementary steps to gain exposure to ARK Space Exploration & Innovation ETF, which trades under the stock ticker ARKX.
- Open your brokerage account: Log in to your brokerage account where you handle your investments.
- Search for the ETF: Enter the ticker or ETF name into the search bar to bring up the ETF's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this ETF.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Exchange-Traded Fund (ETF)
Holdings of ARK Space Exploration & Innovation ETF
As of November 2025, this Ark ETF had 34 holdings in the fund -- around the usual 35 to 55 holdings. The top 10 holdings in the fund reflect a variety of businesses, while the top three positions made up about 24% of the ETF's holdings. Those were:
- L3Harris Technologies (LHX +1.77%), a defense and commercial technologies company, with a 8.23% weighting
- Teradyne (TER +0.36%), which provides automation solutions for the semiconductor industry, with a 7.88% weighting
- Kratos Defense & Security (KTOS +4.90%), a leading drone stock that also specializes in developing drones and a notable defense contractor, with a 7.84% weighting
Should I invest in ARK Space Exploration & Innovation ETF?
The best ETF choice for some people may be a poor selection for others. But there are some factors investors can consider when deciding whether the ARK Space Exploration & Innovation ETF is right for them.
For one, the ARKX ETF is a smart choice for those eager to gain exposure to a growth industry. The space economy is expected to grow considerably in the coming years. Consequently, the space-focused ETF could be a smart choice for investors with longer investing horizons and the patience to let the space economy develop.
Another consideration is the amount of risk investors are willing to accept. Investing in a single space stock could be a speculative investment that ends up earthbound instead of soaring through the stratosphere. Choosing an ETF with dozens of holdings, on the other hand, helps mitigate that risk.
Investors often look to ETFs as another way to supplement passive income streams. Currently, this ETF doesn't provide investors with a distribution, so if collecting dividends is at the top of your priority list, it is not right for you.
Does ARK Space Exploration & Innovation ETF pay a dividend?
Investors looking to boost their passive income streams with a dividend ETF will have to look elsewhere since the ARK Space Exploration & Innovation ETF didn't pay a dividend as of November 2025. In fact, investors committed to a Cathie Wood–backed ETF will find that they're out of luck since Ark Invest ETFs don't pay dividends.
What is ARK Space Exploration & Innovation ETF's expense ratio?
The ARK Space Exploration & Innovation ETF has a 0.75% expense ratio. So, on a $10,000 investment, for example, you'll pay $75 annually in fees.
Whether you're considering an ETF or a mutual fund (or another investment vehicle), it's always important to be mindful of the fees you may be charged. Investors want to maximize the returns on their investments, and investments with high expense ratios can cut into some of the profits you may generate from your investments.
Expense Ratio
Historical performance of ARK Space Exploration & Innovation ETF
Unlike some ETFs that seek to match the performance of a certain index -- one tied to a sector or otherwise -- this ETF states that it has the broad goal of "long-term growth of capital." To assess the degree to which the ETF has met this goal, we can use the S&P 500 as a yardstick.
It's important to remember, though, that the ARK Space Exploration & Innovation ETF only launched in March 2021, so there isn't a lengthy history to consider.
Fund | 1-Year | 3-Year |
|---|---|---|
ARK Space Exploration & Innovation ETF | 49% | 103.5% |
S&P 500 Index | 13.7% | 75% |
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The bottom line on ARK Space Exploration & Innovation ETF
Although several aerospace ETFs provide exposure to stocks associated with the wild blue yonder, the ARK Space Exploration & Innovation ETF is the only one exclusively focused on companies that operate above the clouds.
While the ETF's performance has provided much to celebrate, the prospect of a booming space economy in the coming years certainly makes it something for patient growth investors to give careful consideration.
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