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Space Economy Rockets Past S&P 500
22 Jan
Summary
- Space index surged 65.62% last year, far exceeding S&P 500.
- Global space-tech investment expected to accelerate in 2026.
- U.S. leads global funding, capturing nearly 60% in 2025.
The space economy is experiencing remarkable momentum, significantly outperforming traditional markets. The S&P Kensho Space Index has surged 65.62% over the past year and saw a notable 19.69% increase in January 2026 alone, far surpassing the S&P 500's gains. This growth is fueled by increasing investor interest and innovation within the sector.
Global space-tech investment is projected to accelerate in 2026. This acceleration is attributed to increased defense spending by governments and substantial private investment in expanding launch capabilities. Space infrastructure is emerging as a key strategic asset for nations looking to enhance their geopolitical standing.
In 2025, the space sector saw record investment, with private funding jumping 48% to $12.4 billion. The United States dominated global funding, securing nearly 60% due to high demand for launch services and defense initiatives. The U.S. government has further solidified space's importance by designating it a core national security and economic priority, aiming to return humans to the Moon by 2028 and bolster space defenses.
Potential catalysts like a SpaceX IPO could further energize the market, serving as a benchmark for industry valuations and attracting more investment. For investors seeking exposure, ETFs such as Procure Space ETF (UFO), ARK Space & Defense Innovation ETF (ARKX), and SPDR S&P Kensho Final Frontiers ETF (ROKT) are notable options.
