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Freedom251 › Blog › ARKX

Best Public Space Stocks and ETFs for Diversifying Beyond SpaceX

By Freedom251 Team · · 11 min read

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For a diversified public-market space position, start with the Procure Space ETF (UFO); it is the most direct single-ticket basket of launch, satellite, communications, Earth-observation and space-infrastructure companies. The ARK Space & Defense Innovation ETF (ARKX) is a broader, actively managed alternative that combines space with defense and technology. If you want individual companies, compare Rocket Lab (RKLB) for launch and spacecraft systems, Planet Labs (PL) for recurring Earth-observation data, and Intuitive Machines (LUNR) for lunar infrastructure. The right choice depends on revenue visibility, government-contract exposure, capital needs, dilution risk, liquidity and volatility—not simply the latest share-price move.

What “diversifying beyond SpaceX” means

SpaceX is privately held, so most investors seeking public exposure must use companies that operate in adjacent layers of the space economy. Those layers have very different economics:

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  • Launch and spacecraft systems: revenue arrives when vehicles, components or missions are delivered, making schedules and execution central.
  • Earth observation and data: satellites feed subscriptions and analytics; recurring contracts can make revenue easier to forecast, but constellations require continual refresh.
  • Satellite communications: network capacity and subscriber or government contracts drive cash flow, with spectrum, financing and competition as major variables.
  • Lunar and in-space infrastructure: missions and government awards can create large opportunities, but timing is milestone-driven and technically demanding.
  • Defense systems: established contractors may provide steadier programs and cash generation, although they are less pure-play space investments.

Procure reported a record $613 billion space economy in 2024 and more than $45 billion of private investment in space during 2025. Those figures describe a large and growing ecosystem, not a guarantee that every listed company will be profitable or that public-market returns will track industry growth.

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Quick comparison: the two main space ETFs

Fund Approach What it adds beyond SpaceX Key trade-off
Procure Space ETF (UFO) Pure-play space basket Launch, satellites, communications, Earth observation, lunar infrastructure and defense holdings in one fund Small- and mid-cap exposure can mean higher volatility, wider spreads and lower liquidity than large established companies
ARK Space & Defense Innovation ETF (ARKX) Actively managed space-and-defense innovation strategy Space companies plus a broader mix of defense and technology businesses selected by the manager Portfolio concentration and sector exposure reflect active decisions rather than a pure-play space index

Procure Space ETF (UFO): the cleanest single-ticket basket

What UFO owns

Procure’s official commentary listed exposure to AST SpaceMobile, Planet Labs, Globalstar, Iridium Communications, Boeing, Northrop Grumman, Lockheed Martin, Firefly Aerospace, Intuitive Machines and Redwire, with the cited weights dated June 17, 2026. A separate Procure article reported Rocket Lab at 5.03% and AST SpaceMobile at 4.91% as of June 19, 2026. Holdings and percentages change, so those figures are a dated snapshot rather than a permanent allocation.

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This mix gives one purchase exposure to several business layers. Planet Labs represents Earth-observation data, Rocket Lab combines launch with spacecraft systems, and Intuitive Machines focuses on lunar infrastructure. Iridium and Globalstar add satellite communications, while Redwire and the large defense contractors provide different growth and contract profiles.

Why investors use UFO

  • Less single-company risk: a failed launch, delayed mission or financing problem at one holding does not determine the entire fund’s result.
  • Business-layer diversity: communications, data, launch, manufacturing and defense respond differently to contract cycles and technical setbacks.
  • Access to smaller public companies: the fund can hold emerging names that may be difficult to research or trade individually.

Risks specific to UFO

UFO is not a low-volatility substitute for a broad-market index. Procure warns that investment return and principal value will fluctuate. Its small- and mid-cap holdings can have wider bid-ask spreads and lower trading liquidity than large established companies, especially during market stress. An ETF also retains exposure to industry-wide risks: launch failures, satellite losses, regulatory changes, export controls, financing conditions and government-budget cycles.

Check the latest holdings, expense information, concentration and trading volume on the issuer’s fund page before placing an order. The June 2026 weights above should not be treated as current after the stated dates.

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ARKX: broader space and defense innovation exposure

How the mandate differs from UFO

ARK says ARKX is an actively managed ETF that normally invests at least 80% of its assets in domestic and foreign equity securities of companies engaged in its “Space Exploration and defense innovation” theme. The fund’s policy was revised and its name changed effective November 23, 2025.

That mandate is intentionally broader than a pure space basket. The manager can emphasize defense technology, aerospace suppliers or other companies that benefit from innovation without being primarily launch or satellite businesses. As a result, ARKX may behave differently from UFO even when both are described as space funds.

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When ARKX may fit

  • You want space exposure alongside defense and enabling technology rather than a narrowly defined space index.
  • You accept that an active manager can make larger sector, company and concentration decisions.
  • You prefer a mandate that can adapt as the definition of space innovation changes.

Questions to check before buying

  • How much of the current portfolio is actually tied to launch, satellites or space infrastructure?
  • What are the largest positions and how concentrated is the fund?
  • How have the mandate and holdings changed since the November 2025 policy and name change?
  • Are the fund’s trading volume and spread suitable for your order size?

Rocket Lab (RKLB): launch and space systems

Business profile

Rocket Lab describes itself as an end-to-end space company. Since Electron’s first orbital launch in January 2018, the company had delivered more than 200 satellites to orbit for private- and public-sector organizations by its cited 2026 investor-relations update.

That description spans more than a launch vehicle. Investors should evaluate the launch business, spacecraft and components, mission services, contract backlog and development of the larger Neutron vehicle as connected but distinct drivers. A company can increase systems revenue while launch cadence is temporarily constrained, or spend heavily on a new vehicle before it generates revenue.

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What to monitor

  • Launch cadence and reliability: count missions completed, delays, anomalies and the time required to return to flight after a problem.
  • Neutron development: track engineering milestones, test results, schedule changes and the cash required before commercial operations.
  • Backlog quality: distinguish funded, contracted work from options, letters of intent or awards dependent on future appropriations.
  • Cash and dilution: vehicle development and production scale can consume substantial cash; new equity issuance can reduce each existing shareholder’s percentage ownership.
  • Customer mix: government work can improve visibility but creates dependence on procurement schedules and policy priorities.

Best use in a diversified portfolio

RKLB is most suitable as a focused launch-and-systems position, not as a proxy for the whole space economy. Its potential upside is tied to execution across several programs, while a launch failure, development delay or capital raise can produce sharp volatility. Holding it alongside data, communications or established defense businesses addresses risks that a launch-only position cannot.

Planet Labs (PL): Earth-observation data and recurring revenue

Business profile

Planet Labs identifies itself as a New York Stock Exchange-listed public benefit corporation that provides daily data and insights about change on Earth. Its constellation and software turn imagery into products for commercial, civil and other institutional customers.

The economic model differs from a launch provider: customers can renew data access, so recurring subscription revenue may be more visible than one-off mission payments. That visibility is not automatic. Customers can reduce usage, contracts can be concentrated among a few accounts, and the company must refresh satellites and maintain ground infrastructure.

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Financial marker

Planet’s cited fiscal 2025 results release reported $15.5 million of full-year adjusted EBITDA, compared with a $(10.6) million adjusted EBITDA loss in fiscal 2025. Confirm the reporting period and definition when comparing this figure with other companies: adjusted EBITDA is a non-GAAP measure and does not equal net income or free cash flow.

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What to evaluate

  • Recurring data revenue: examine renewal rates, contract duration and the split between recurring subscriptions and one-time work.
  • Customer concentration: determine whether a small number of commercial or government customers account for a material share of sales.
  • Satellite refresh: assess planned replacements, launch costs, useful life and the capital needed to preserve image frequency and quality.
  • Path to sustained profitability: look beyond one adjusted-EBITDA period to operating cash flow, capital expenditure and stock-based compensation.
  • Data differentiation: compare revisit frequency, resolution, analytics and integration into customer workflows rather than treating imagery as a commodity.

Role relative to launch stocks

PL can provide a different source of revenue than RKLB or LUNR because its value proposition is information delivered over time. It still carries space-asset risk and government-contract exposure, but its investment case depends more on customer retention, software adoption and efficient constellation management than on a single launch manifest.

Intuitive Machines (LUNR): lunar and space infrastructure

Business profile

Intuitive Machines says it builds spacecraft, connects networks and operates infrastructure-as-a-service for commercial, civil and national-security customers. Its opportunity set includes lunar missions, communications and other infrastructure required for sustained activity beyond Earth orbit.

What makes the stock different

Lunar infrastructure is a milestone-driven business. Mission dates, payload readiness, launch windows, landing performance and government-award timing can move revenue between periods. A successful mission may validate technology and unlock follow-on work; a delay or failure can consume cash while pushing expected revenue into a later quarter.

Due-diligence checklist

  • Mission execution: review navigation, landing, payload delivery and communications performance rather than relying on mission headlines.
  • Contract timing: separate signed, funded awards from potential task orders and programs that depend on future budgets.
  • Backlog quality: assess cancellation terms, customer concentration, gross margins and the schedule for converting backlog into cash.
  • Funding needs: monitor cash burn, working-capital requirements and possible equity or debt financing.
  • Government exposure: understand how civil and national-security budgets affect demand and payment timing.

LUNR offers direct exposure to lunar infrastructure, but it should be sized with the expectation of high operational and financing volatility. Its risk profile is not interchangeable with a diversified ETF or a mature defense contractor.

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Other public companies inside a space allocation

UFO’s holdings illustrate why “space stock” is not a single category. AST SpaceMobile and Iridium Communications are satellite-communications businesses with different network, spectrum and financing considerations. Redwire supplies space infrastructure and components. Boeing, Northrop Grumman and Lockheed Martin are established aerospace and defense contractors whose scale, backlog and government relationships generally differ from early-stage launch or lunar companies.

These names can diversify business-layer exposure, but they also dilute the purity of a space thesis. A defense contractor may earn most of its revenue from terrestrial programs; a communications operator may be more sensitive to subscriber economics and spectrum regulation than to launch cadence. Read each company’s segment reporting before assuming that a “space” label describes the majority of sales.

How to compare a space ETF with an individual stock

Decision axis Questions for an ETF Questions for an individual company
Business layer How much is allocated to launch, data, communications, lunar infrastructure and defense? What product actually generates revenue, and what adjacent programs are still developmental?
Revenue visibility Does the basket combine recurring businesses with milestone-driven businesses? What share is subscription, contracted backlog, milestone payment or discretionary government award?
Capital intensity Are several holdings simultaneously funding vehicles, satellites or factories? How much cash is required for the next program milestone, and when can it become self-funding?
Customer mix Does diversification reduce dependence on one customer or agency? Would losing the largest customer materially change revenue or cash flow?
Liquidity and volatility What are the fund’s spread, volume and concentration? Can the stock absorb your order without a large price impact, especially after news?
Dilution Do underlying holdings frequently issue shares? How might future equity issuance change per-share ownership?

A practical framework for building exposure

1. Choose the role first

Decide whether space is a core diversification sleeve or a high-risk satellite position. A core sleeve generally favors broad exposure and liquidity; a satellite position can tolerate more concentrated bets on launch, lunar missions or emerging communications.

2. Pick the ETF architecture

Choose UFO when you want the most direct, multi-layer space basket and accept small- and mid-cap volatility. Choose ARKX when you deliberately want space combined with defense and technology and are comfortable with active-manager concentration. Review current holdings before every purchase because both portfolios can change.

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3. Add stocks only for a specific thesis

  • Select RKLB if your thesis is execution in launch and space systems, including progress on Neutron.
  • Select PL if your thesis is durable demand for daily Earth data, renewals and improving operating efficiency.
  • Select LUNR if your thesis is lunar missions and infrastructure, and you can tolerate milestone and financing risk.

4. Limit overlap

Buying UFO and then adding several of its largest holdings may create more concentration than expected. Compare the ETF’s latest weights with your direct positions and calculate your look-through exposure to launch, communications, data and defense.

5. Set a review schedule

Recheck holdings, contracts, cash, share count, mission schedules and customer concentration at each earnings release or major mission event. The figures cited here were current on October 18, 2026 for approximately seven days; fund policies, results and holdings can change sooner.

Risks that apply across public space investments

Technical and schedule risk

Launch vehicles, satellites, landers and communications networks operate in unforgiving environments. A single failure can delay revenue, require redesign and increase financing needs. Even a technically successful mission can slip because a payload, launch slot or regulatory approval is unavailable.

Government-contract dependence

Public agencies can be major customers, but awards depend on appropriations, procurement rules and changing priorities. A contract described as a long-term opportunity may not produce revenue until funded task orders are issued.

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Capital and dilution risk

Constellations, factories and new vehicles require cash before they produce scale economics. Companies may sell shares or issue convertible debt, reducing existing owners’ percentage interest or increasing future claims on cash flow.

Liquidity and trading risk

Small-cap space stocks and thematic ETFs can trade with wider spreads than large, heavily traded companies. Use limit orders, check average volume and avoid assuming that an ETF’s intraday price exactly matches its net asset value during volatile markets.

Valuation and narrative risk

Space themes attract attention long before revenue is proven. Separate addressable-market claims from signed contracts, and compare enterprise value, cash burn, backlog conversion and share-count growth rather than relying on recent returns.

Bottom line

UFO is the clearest starting point for investors who want one public-market security spanning multiple space business layers. ARKX is the alternative for a broader, actively managed blend of space, defense and technology. RKLB, PL and LUNR can sharpen a portfolio around launch and systems, Earth-observation data, or lunar infrastructure respectively, but each introduces company-specific execution, funding and dilution risk. Diversification works only when you check what each holding actually does, how it gets paid and how much capital it needs to reach the next milestone.

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Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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