Home / Business and Economy / Space vs. Skies: ETFs Offer Different Flights
Space vs. Skies: ETFs Offer Different Flights
3 Jun
Summary
- ARKX charges a higher expense ratio of 0.75% compared to JETS' 0.6%.
- ARKX focuses on orbital, suborbital tech and defense; JETS on commercial airlines.
- ARKX's top holdings include Rocket Lab and AMD; JETS features Delta and American Airlines.
Investors deciding between the ARK Space & Defense Innovation ETF (ARKX) and the U.S. Global Jets ETF (JETS) must consider distinct investment strategies. ARKX, launched in 2021, targets orbital and suborbital aerospace, along with defense innovation, holding 45 stocks with significant exposure to industrials (56%) and technology (27%). Its top holdings include Rocket Lab, Advanced Micro Devices, and L3Harris.
In contrast, the U.S. Global Jets ETF (JETS), established in 2015, focuses narrowly on the commercial airline industry. It comprises 42 holdings, predominantly in industrials (89%), aiming for comprehensive global airline exposure. Major holdings within JETS are Delta Air Lines, American Airlines Group, and United Airlines Holdings. ARKX carries a higher expense ratio of 0.75% compared to JETS' 0.6%, a difference that can impact long-term returns.
