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Space ETFs: Innovation vs. Defense Giants
22 Oct
Summary
- Tema NASA ETF focuses on high-growth space commercialization with concentrated, active approach.
- iShares ITA ETF offers broader defense sector access at half the cost.
- ITA has $11.8 billion AUM, while NASA has $1.0 billion AUM.
Investors looking to invest in the burgeoning space sector must choose between a concentrated, innovation-focused strategy and broader exposure to established defense companies. The iShares U.S. Aerospace & Defense ETF (ITA), launched in 2006, offers a more affordable path with a 0.37% expense ratio. It tracks a market-cap-weighted index of domestic aerospace and defense firms, holding 50 stocks with significant positions in GE Aerospace, RTX, and Boeing.
Conversely, the Tema Space Innovators ETF (NASA), launched in 2026, charges a higher 0.75% expense ratio for its actively managed portfolio. This fund concentrates on 37 companies poised to profit from space expansion, with top holdings including SpaceX SPV Exposure, Rocket Lab Corp, and Space Exploration Technologies Corp. NASA's focused approach may offer greater growth potential but comes with higher volatility and concentration risk.
The choice between ITA and NASA depends on investor risk tolerance and investment goals. ITA is recommended for those seeking lower costs and exposure to established aerospace and defense businesses. NASA is suitable for investors willing to accept higher risk for a focused investment in the commercial space industry, particularly satellite and launch services.
