Forget SpaceX at $200. Buy This Space ETF Instead for Just $34.

Now that the highly anticipated initial public offering (IPO) of Space Exploration Technologies (NASDAQ: SPCX) is in the rearview mirror, Main Street investors can shoot for the moon with one of the burgeoning space industry's rising stars.

But even though the market has demonstrated a voracious hunger for SpaceX stock, many are hesitant to click the buy button after it has soared so high since its IPO. Luckily, space investors need not despair, as there's a space-themed exchange-traded fund (ETF) that offers exposure to SpaceX and other leaders in the space economy.

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SpaceX has forged ahead into the final frontier

While most people are still operating on terra firma, the space economy is in full swing and expected to grow further in the coming years. Research from business intelligence firm Global Market Insights projects that the global space economy market was valued at $439.1 billion last year and is forecast to reach $462.4 billion in 2026, expanding to $851.8 billion in 2035.

In these early innings of the space economy's growth, SpaceX has emerged as a force to be reckoned with. The company has distinguished itself in several ways. From its 2008 achievement of becoming the first private company to successfully launch a liquid-fueled rocket to Earth's orbit to its 2012 success of becoming the first private company to dock a private spacecraft with the International Space Station.

Shares have rocketed higher, but their flight will likely encounter some turbulence

Pricing its IPO at $135, SpaceX saw its stock shoot sharply higher on its first day of trading. After rising to an intraday high of $176.52, SpaceX stock closed at $160.95. The bullish sentiment surrounding SpaceX stock carried over into the stock's second day of trading, when it closed almost 20% higher at $192.50.

Because SpaceX isn't profitable, the traditional price-to-earnings ratio doesn't provide much insight into the stock's valuation. Instead, we can look to the price-to-sales (P/S) ratio. In doing so, we find that SpaceX stock is trading at a steep P/S ratio of 130 based on trailing sales.

Between the stock's pricey valuation and the likelihood that there's bound to be some volatility in the stock price -- a common feature of IPO stocks -- it's no wonder that investors are hesitant to hitch a ride on Elon Musk's rocket stock.

A space-focused ETF that provides SpaceX exposure

Fortunately for those with their sights set on the stars, the Ark Space Exploration & Innovation ETF (NYSEMKT: ARKX) provides a great opportunity.

Managing $1.1 billion in net assets, the Ark Space Exploration & Innovation ETF has a 0.75% expense ratio and offers broad exposure to leading space stocks, including SpaceX. In fact, SpaceX is the fund's largest position, with a 7.2% weighting, while Rocket Lab, a leading launch services provider, is the second-largest holding, with a 6.8% weighting.

It's not only rocket stocks that provide exposure to the space economy in the fund. Satellite manufacturer L3Harris, the fund's third-largest position, and Advanced Micro Devices, which designs chips uniquely suited for space operations and is the fourth-largest position, provide diverse exposure to the space economy.

Investing in the ETF provides wide exposure to the space industry's various facets and mitigates the risk of excessive concentration in SpaceX.

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, L3Harris Technologies, and Rocket Lab. The Motley Fool has a disclosure policy.