7 Best Space Stocks and ETFs to Buy in 2026
Space may be the next frontier for investors who want their portfolios to keep accelerating upward. Advanced technology has introduced new possibilities that previously seemed like science fiction, and some of the companies specializing in these solutions have been crushing the S&P 500’s returns. However, the latest innovations in the industry go far beyond space tourism.
“The biggest shift right now is that space is becoming infrastructure rather than just exploration,” Viktor Shpakovsky, investment partner at Beyond Earth Ventures, told U.S. News. “We’re seeing massive growth in satellite constellations for communications, Earth observation and defense.”
Shpakovsky says that companies with rockets and satellite systems have “a huge economic advantage,” but his insights about the moon show that the space industry is just getting started.
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“The moon is quickly becoming a real commercial sector. Governments are investing heavily in lunar programs, but we’re also seeing private companies building landers, rovers and logistics systems to support sustained lunar activity,” Shpakovsky says. “Over the next decade, the moon will likely move from occasional missions to a permanent economic and geopolitical presence.”
Wondering which space stocks and ETFs are worth monitoring? These picks have the potential to take your investment to new heights:
| Space Stock/ETF | Market Capitalization/Assets* | Specialty |
| Rocket Lab Corp. (ticker: RKLB) | $39.5 billion | Satellite launches, platforms |
| AST SpaceMobile Inc. (ASTS) | $33.7 billion | Satellite design, cellular broadband network |
| Intuitive Machines Inc. (LUNR) | $2.6 billion | Space exploration, infrastructure, services |
| Kratos Defense & Security Solutions Inc. (KTOS) | $16.7 billion | Drones, air defense systems |
| Procure Space ETF (UFO) | $361.3 million | Space stocks pure-play fund |
| Ark Space & Defense Innovation ETF (ARKX) | $718.7 million | Concentrated space stocks fund |
| iShares U.S. Aerospace & Defense ETF (ITA) | $16.4 billion | Diversified aerospace fund |
*Market cap is shown for stocks, while assets are shown for ETFs.
Rocket Lab Corp. (RKLB)
Rocket Lab launches satellites into space on rockets that can successfully land themselves. The company performs this service on behalf of private and public sector organizations. These satellites are critical for Wi-Fi, telecom, the defense industry, environmental monitoring and other applications.
Governments and corporations turn to Rocket Lab for private, dedicated launches that give them full flexibility regarding when and where to launch satellites. Other satellite launching models offer less flexibility and require ridesharing, similar to taking public transportation versus getting a limousine just for you.
Rocket Lab is already generating revenue while exhibiting strong demand for its services. The company flew a record 21 missions using Electron and HASTE launch vehicles with a 100% success rate. That was enough to bring in $602 million in revenue for 2025, representing 38% year-over-year growth.
Rocket Lab is currently sitting on a $1.85 billion backlog, which is up by 73% year over year. As Rocket Lab continues to scale its number of missions, its revenue should continue to surge.
AST SpaceMobile Inc. (ASTS)
AST SpaceMobile is building a space-based cellular broadband network that aims to provide 4G and 5G internet worldwide. The company has been building connections and enhancing its technology for multiple years, but 2025 was the first year it became a revenue-generating business. AST SpaceMobile closed out the year with $70.9 million in revenue, but momentum is accelerating.
George Kailas, founder and CEO of Prospero.ai, an AI-driven stock picking and signal platform for retail investors, explains that AST SpaceMobile has tangible revenue and tailwinds, which make it less risky than other high-growth stock picks.
“It’s important to distinguish between ‘hype’ and more clearly defined revenue paths,” he says. “When Tesla investors get excited about potential future Optimus revenues, the numbers are still highly speculative. By contrast, AST SpaceMobile already has approximately $1.2 billion in contracted revenue for 2027.”
AST SpaceMobile also has $3.9 billion on its balance sheet to fund its ambitions, and its fully subscribed $1 billion in 2.25% convertible senior notes due in 2036 show that institutional investors feel confident about its long-term prospects.
“Not only is ASTS in the right subsector to capture major growth potential, but we are particularly bullish because of its global roster of telecom partners, which helps validate the business model and supports long-term revenue visibility,” Kailas says.
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 stock proceeded to crash, but shares have now more than doubled since late November, with institutional investors like Vanguard buying additional shares.
The company has been making strategic acquisitions to turn itself into a leading space company that can transport cargo, instruments and satellites to the moon’s surface. It acquired deep space navigation specialist KinetX and spacecraft manufacturer Lanteris Space Systems. The combined entity generates more than $850 million in revenue and has a $920 million backlog, according to the company. Intuitive Machines wrapped up the recent quarter with a $235.9 million backlog for its services.
Intuitive Machines has also secured high-quality financing. Its $300 million in 2.5% convertible senior notes due in 2030 let investors buy shares at approximately $13.11, which represented a premium of roughly 25% when the bonds were issued. The stock has soared past that $13.11 level, indicating that institutional investors made the right move when buying these convertible bonds.
Kratos Defense & Security Solutions Inc. (KTOS)
Kratos Defense & Security Solutions’ share price has tripled over the past year as of March 10. This market outperformance is driven by the company’s defense contracts.
In a fourth-quarter press release that featured 21.9% year-over-year revenue growth, Kratos President and CEO Eric DeMarco cited a significantly improving “global national security opportunity and funding environment for the industry.” He also told investors they are in the middle of a “generational recapitalization of the defense industrial base.”
Kratos’ unmanned drones, air defense systems, satellites, missiles and radars should experience more demand due to these initiatives. Kratos has a $1.6 billion consolidated backlog and a $13.7 billion bid and proposal pipeline.
Procure Space ETF (UFO)
If you’re looking to spread your investment across multiple companies, the Procure Space ETF offers exposure to pure-play 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 17.4% in year-to-date gains as of March 10. Additionally, it has doubled over the past year. Those gains are necessary to justify the ETF’s 0.75% expense ratio. It currently has $361 million in total assets and a high turnover rate of 51% as of late last year.
UFO’s top three holdings are Planet Labs PBC (PL), MDA Space Ltd. (MDA.TO) and Viasat Inc. (VSAT). Those three holdings make up roughly 17% of the fund’s total assets. Overall, UFO has about 50 stocks in its portfolio.
Ark Space & Defense Innovation ETF (ARKX)
The Ark Space & Defense Innovation ETF offers the same premise as UFO. It gives investors exposure to space stocks and has thrashed the S&P 500’s performance with almost 74.4% in gains over the past year. 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 L3Harris Technologies Inc. (LHX), Kratos and Rocket Lab. ARKX is heavily concentrated, with its top 10 holdings making up nearly 60% of its total assets. The fund also has some artificial intelligence stocks like Advanced Micro Devices Inc. (AMD) and Palantir Technologies Inc. (PLTR).
iShares U.S. Aerospace & Defense ETF (ITA)
The iShares U.S. Aerospace & Defense ETF casts a wide net compared with the other funds on this list. Some of the stocks in this fund are space stocks, but others are in the more general aerospace industry. The fund primarily focuses on large-cap growth stocks instead of smaller space stocks that come with more risks and higher potential rewards. This setup results in less volatility, but the fund can still deliver some solid gains.
ITA shares are up by 11.7% year to date and have an annualized 19.9% return over the past five years. Its top three holdings — GE Aerospace (GE), RTX Corp. (RTX) and Boeing Co. (BA) — make up about 44% of its total assets as of early March. ITA has a 0.38% expense ratio and a trailing-12-month yield of 0.5%.
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7 Best Space Stocks and ETFs to Buy in 2026 originally appeared on usnews.com
Update 03/11/26: This story was published at an earlier date and has been updated with new information.