Space may be the next frontier for investors who want their portfolios to keep accelerating upward. Grand View Research projects that the global space technology industry will achieve a 9.3% compound annual growth rate, or CAGR, from now until 2030. McKinsey & Co. has called the space industry a $1.8 trillion opportunity.
You can invest in space travel and commercial uses for space exploration through various space stocks and exchange-traded funds, or ETFs. However, the industry has several unknowns, such as whether consumers will actually want to travel to space at the price point required.
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High potential combined with uncertainty has a tendency to cause some stock prices to overextend themselves, and when they come crashing down, it hurts investors big time. For instance, Virgin Galactic Holdings Inc.’s (ticker: SPCE) shares nearly doubled in June 2021, but the stock has tumbled by 99.7% from that high as of Sept. 5.
The strong spikes of 2021 are distant memories, as shares are down by 45.2% year to date, with a 20-for-1 reverse stock split in mid-2024 being the only thing that kept SPCE shares eligible for public markets.
Strong stock momentum does not guarantee promising long-term returns, as investors saw with Virgin Galactic. However, its woes shouldn’t deter investors from entering this market. Some of the stocks on this list have crushed the S&P 500’s performance over the past year.
Furthermore, some space stocks aren’t pure space stocks. These corporations have other segments, like aerospace, that have been generating high revenues and profits for decades.
Wondering which space stocks and ETFs are worth monitoring? These picks have the potential to take your investment to new heights, but as some share prices have skyrocketed year to date, you may want to watch for an opportunity to buy in on a pullback:
| Stock/ETF | YTD Performance* | Business Focus |
| Rocket Lab Corp. (RKLB) | +80.0% | Satellite launches, platforms |
| AST SpaceMobile Inc. (ASTS) | +101.0% | Satellite design, cellular broadband network |
| Intuitive Machines Inc. (LUNR) | -53.3% | Space exploration, infrastructure, services |
| Kratos Defense & Security Solutions Inc. (KTOS) | +145.7% | Drones, air defense systems |
| Procure Space ETF (UFO) | +44.6% | Space stocks pure-play fund |
| Ark Space Exploration & Innovation ETF (ARKX) | +31.8% | Concentrated space stocks fund |
| iShares U.S. Aerospace & Defense ETF (ITA) | +36.7% | Diversified aerospace fund |
*As of the Sept. 5 market close.
Rocket Lab Corp. (RKLB)
Space stocks don’t only cater to tourism. Some companies launch satellites into outer space that enable better communication on mobile devices, allow GPS apps to provide directions and help with emergency responses.
Satellites have become critical for many societies, and Rocket Lab regularly puts them up in space. The company provides propulsion, spacecraft, satellite platforms and launch vehicles.
Rocket Lab is also growing at a fast clip, as revenue jumped by 36% year over year in the second quarter. Five flawless small orbital launch missions, known as Electrons, were conducted in the quarter. Electron rockets carry small satellites into orbit, and Rocket Lab recently launched its 70th Electron mission as part of its accelerated schedule. RKLB shares are up by 80% year to date.
AST SpaceMobile Inc. (ASTS)
AST SpaceMobile is building a space-based cellular broadband network that aims to provide 4G and 5G internet worldwide. Its shares have almost doubled year to date as space stocks have attracted more investors, but high revenue growth certainly helped the stock’s case. The company delivered $1.2 million in Q2 revenue, which was a 28% year-over-year increase.
However, sales won’t stay that “low” for long. AST SpaceMobile mentioned in its Q2 press release that it remains on track to generate between $50 million and $75 million in revenue in the second half of 2025. AST SpaceMobile will serve government and commercial customers during this stretch. It has also formed partnerships with more than 50 mobile network operators globally while receiving additional U.S. government contract awards. The company has a healthy $1.5 billion in cash, cash equivalents and restricted cash on its balance sheet.
Interestingly, AST SpaceMobile got some of that cash by issuing $575 million in seven-year convertible senior notes, with a 2.375% coupon and effective conversion price of $120.12 per share of Class A common stock. The stock would have to almost triple in seven years to reach the $120.12 conversion price, indicating bullishness among long-term investors. That’s especially true considering a 2.375% yield and higher can easily be found in certificates of deposit and high-yield savings accounts now.
AST SpaceMobile has soared 101% year to date as of the market close on Sept. 5.
Intuitive Machines Inc. (LUNR)
Intuitive Machines, a space exploration and infrastructure firm, has been a volatile stock since it went public through a special-purpose acquisition company, or SPAC, in 2023. The company’s shares went from $2.55 per share on Dec. 29, 2023, to $18.16 on Dec. 31, 2024. The 612% surge in 2024 feels like a distant memory with the stock down by 53.3% year to date. After its lunar lander ended up on its side on the moon for a second time in March, shares dropped within days of the news.
However, Intuitive Machines still has quality contracts and partnerships. Revenue also increased by 21% year over year in the second quarter, and the company made a strategic acquisition of KinetX Inc. that positions it for Earth orbit, moon and Mars constellation missions across commercial, civil and national security customers.
Just as Crowdstrike Holdings Inc. (CRWD) investors have mostly dismissed the global IT outage and Meta Platforms Inc. (META) investors have moved on from the Cambridge Analytica scandal, it’s also feasible that LUNR shareholders will forget about the botched moon landings if the company continues to improve and deliver solid results.
Kratos Defense & Security Solutions Inc. (KTOS)
Kratos Defense & Security Solutions’ share price has more than doubled year to date and has nearly tripled over the past year. This market outperformance is driven by the company’s defense contracts.
In a second-quarter press release that featured 17% year-over-year revenue growth, Kratos President and CEO Eric DeMarco cited significant funding being committed by the U.S. and its allies to defense. He pointed to the “planned U.S. 2026 national security spend exceeding $1 trillion, NATO committing 5% of member GDP to defense and Asian allies looking to do the same.”
Kratos’ unmanned drones, air defense systems, satellites, missiles and radars should experience more demand due to these initiatives. Kratos has a $1.4 billion consolidated backlog.
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Procure Space ETF (UFO)
If you’re looking to spread your investment across multiple companies, the Procure Space ETF offers exposure to pure space stocks as it aims to provide “diversification beyond the limitations of solely earthbound companies.”
The fund has comfortably outperformed the S&P 500 with 44.6% in year-to-date gains. Additionally, it has almost doubled over the past year. Those gains are necessary to justify the ETF’s 0.94% expense ratio. However, as more investors learn about the fund, the expense ratio may go down. Right now, it only has $112.3 million in total assets.
UFO’s top three holdings are DISH parent EchoStar Corp. (SATS), Viasat Inc. (VSAT) and Rocket Lab. Those three holdings make up roughly 30% of the fund’s total assets. Overall, UFO has more than 40 stocks in its portfolio.
UFO got a little bump up on Sept. 8 after news broke that Elon Musk’s SpaceX is planning to buy EchoStar’s wireless spectrum licenses for $17 billion to enhance its Starlink satellite network. SATS shares were up about 15% in midday trading.
Ark Space Exploration & Innovation ETF (ARKX)
The Ark Space Exploration & Innovation ETF offers the same premise as UFO. It gives investors exposure to space stocks and has outperformed the S&P 500 with a 31.8% year-to-date gain. It has a lofty 0.75% expense ratio, but it’s easier to overlook the high fee if ARKX continues to deliver.
The fund’s top three holdings are Kratos Defense & Security Solutions, Rocket Lab and AeroVironment Inc. (AVAV). ARKX is heavily concentrated, with its top 10 holdings making up about 64% of its total assets.
iShares U.S. Aerospace & Defense ETF (ITA)
The iShares U.S. Aerospace & Defense ETF offers the most diversification. Some of the stocks in this fund are space stocks, but others are in the more general aerospace industry. This setup results in less volatility, but the fund can still deliver some solid gains.
ITA shares are up by 36.7% year to date and have an annualized 20% return over the past five years. Its top three holdings — GE Aerospace (GE), RTX Corp. (RTX) and Boeing Co. (BA) — make up more than 45% of its total assets. ITA has a 0.38% expense ratio and a 12-month trailing yield of 0.6%.
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7 Best Space Stocks and ETFs to Buy in 2025 originally appeared on usnews.com
Update 09/08/25: This story was published at an earlier date and has been updated with new information.
