Why is the space economy outperforming the S&P 500?

The space economy is seeing rapid innovation and rising investor interest, particularly driven by defense spending and private investment in launch capacity.

What is the U.S. doing to prioritize space?

The U.S. has declared space a core national security and economic priority, aiming for a lunar return by 2028 and enhanced space defenses.

Which space ETFs are recommended for investors?

Investors can consider Procure Space ETF (UFO), ARK Space & Defense Innovation ETF (ARKX), and SPDR S&P Kensho Final Frontiers ETF (ROKT).

Home / Business and Economy / Space Economy Rockets Past S&P 500

Space Economy Rockets Past S&P 500

22 Jan

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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.