ARKX vs. NASA ETF: Identical Fees, Different Space Strategies

Comparing ARK Space & Defense Innovation ETF (NYSEMKT:ARKX) and Tema Space Innovators ETF (NYSEMKT:NASA) reveals two high-growth strategies with identical management fees but differing approaches to the burgeoning commercial space economy.

The space industry is no longer just the realm of government agencies; it is an expanding commercial frontier attracting significant private capital. Investors looking for exposure to this high-growth sector often compare the ARK Space & Defense Innovation ETF and the Tema Space Innovators ETF as they seek growth beyond Earth.

Snapshot (cost & size)

Cost is a wash between these two thematic options, as both funds carry an identical 0.75% expense ratio. This makes the choice for investors less about management fees and more about the specific sub-sectors and growth strategies each fund emphasizes.

Performance & risk comparison

What's inside

Tema Space Innovators ETF is a dynamically managed fund that explores the commercialization of the global space industry, including satellite operations and launch services. Its investment professionals use fundamental research to identify companies with competitive strengths that derive substantial revenue from the space value chain. Its largest positions include Space Exploration Technologies (SpaceX) (NASDAQ:SPCX) at 20.14%, Rocket Lab (NASDAQ:RKLB) at 11.09%, and Viasat (NASDAQ:VSAT) at 6.18%. The fund holds 38 securities and was launched in 2026.

ARK Space & Defense Innovation ETF focuses on orbital and sub-orbital aerospace, including companies that lead in space exploration and defense innovation. It maintains a heavy sector concentration with industrials at 63%, followed by technology at 21%, and consumer cyclical at 9%. Its largest holdings include SpaceX at 9%, Kratos Defense & Security (NASDAQ:KTOS) at 7.41%, and L3harris Technologies (NYSE:LHX) at 7%. It manages a basket of 45 holdings and was launched in 2021. The fund seeks substantial capital appreciation by targeting domestic and international innovators.

For more guidance on ETF investing, check out the full guide at this link.

Which looks like the better buy?

Tema Space Innovators ETF and ARK Space & Defense Innovation ETF share some characteristics, like their identical expense ratios. Despite being five years older than NASA, ARKX has fewer assets under management, but the size differential isn't huge. NASA has a much higher average trading volume, which may appeal to investors who value greater liquidity.

As far as their holdings, both ETFs' biggest positions are in SpaceX. They also both own Viasat in their top 10 holdings. But that's where things get interesting. ARKX's top 10 includes some businesses I wouldn't expect, like Deere (NYSE:DE), Amazon (NASDAQ:AMZN), and Advanced Micro Devices (NASDAQ:AMD). So it appears the fund has a pretty broad universe of investible stocks. (Genuinely curious how Deere ended up in there.)

Meanwhile, NASA's top 10 looks how you'd expect, although SpaceX having a 20% weighting in the portfolio gives me pause, personally. That's a pretty large position for a single stock. In contrast, SpaceX only accounts for 9% of ARKX's portfolio.

As a relatively conservative investor, I prefer ARKX over NASA due to the concentration risk posed by NASA's significant exposure to SpaceX stock.

Erin Kennedy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Deere, Kratos Defense & Security Solutions, L3Harris Technologies, and Rocket Lab. The Motley Fool has a disclosure policy.