SpaceX Has Turned Space Investing Into One of the Hottest Trades of 2026. But Which ETF Is Actually Worth Buying?
Written by Sara Appino for The Motley Fool -> Tema Space Innovators ETF carries a higher expense ratio and a larger asset base than First Trust Indxx Aerospace & Defense ETF. First Trust Indxx Aerospace & Defense ETF focuses on established defense industrial players while Tema
Tema Space Innovators ETF carries a higher expense ratio and a larger asset base than First Trust Indxx Aerospace & Defense ETF.
First Trust Indxx Aerospace & Defense ETF focuses on established defense industrial players while Tema Space Innovators ETF targets emerging space technologies.
First Trust Indxx Aerospace & Defense ETF has experienced a deeper maximum drawdown than Tema Space Innovators ETF over the recorded period.
First Trust Indxx Aerospace & Defense ETF (NYSEMKT:MISL) offers a lower-cost entry into established defense industrials, while Tema Space Innovators ETF (NYSEMKT:NASA) provides a larger asset base and a narrower focus on space innovation.
Investors looking for exposure to the sky and beyond may find these two funds provide significantly different paths. While the First Trust fund follows a traditional index of defense firms, the Tema fund employs an active mandate to capture the space economy, including satellite communications, launch systems, and space-based data infrastructure across various geographies.
The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Tema Space Innovators ETF (NYSEMKT:NASA) focuses on companies engaged in the expanding space economy, with largest positions including Rocket Lab (NASDAQ:RKLB) at 9.79%, MDA Space (NYSE:MDA) at 6.54%, and AST SpaceMobile (NASDAQ:ASTS) at 6.49%. It has the flexibility to invest across various market capitalizations and geographies to find innovation.
By comparison, the First Trust Indxx Aerospace & Defense ETF (NYSEMKT:MISL) provides a portfolio of 49 holdings, primarily in industrials (83%) and technology (17%). Its top holdings include Palantir Technologies (NASDAQ:PLTR) at 9.24%, GE Aerospace (NYSE:GE) at 8.01%, and The Boeing Company (NYSE:BA) at 7.78%. Launched in 2022, the First Trust fund paid $0.16 per share over the trailing 12 months.
