ARK Space & Defense Innovation ETF

ARKX

Market cap $732M

The ARK Space & Defense Innovation ETF is actively managed, targeting innovation in space and defense but suffers from opaque stock selection and frequent trading. ARKX has underperformed defense tech peers like SHLD, with performance hampered by high turnover and a 0.75% expense ratio. Recent shifts in warfare toward autonomous, low-cost drones support the fund's thematic focus, yet ARKX's execution and transparency remain concerns.

An unfortunate reality facing the world in 2026 is rising geopolitical risk. The year kicked off with a U.S. attack on Venezuela, with the Russian war in Ukraine entering a fifth calendar year.

A merger between SpaceX and xAI has all eyes on companies led by Elon Musk with reports that the billionaire could also be eyeing a tie-up with Tesla Inc (NASDAQ: TSLA).

Someone asked me the other day, “What are the hot themes for the new year?”  To start the year, we have seen some pretty impressive outsized performance from several key investment themes.

SpaceX is the most anticipated market debut of the decade, and space ETFs like the Procure Space ETF (NASDAQ:UFO ) , ARK Space & Defense Innovation ETF (BATS:ARKX ) , and State Street SPDR S&P Kensho Final Frontiers ETF (NYSEARCA:ROKT ) will be the biggest beneficiaries.

ARKX and other space ETFs are riding a surge as the S&P Kensho Space Index posts a record year, fueled by rising investment and defense focus.

Ark Invest, led by Cathie Wood, issued another "Big Ideas" list on Wednesday, sharing themes for 2026 that investors should watch. This year's list comes after the firm reported a strong 2025, with its ETFs outperforming the S&P 500.

Ark Invest had a 2025 to remember, with ETFs from the Cathie Wood-led financial company outpacing the S&P 500's full-year gains. Here's a look at the gains for the six main Ark Invest ETFs and how they compare to the S&P 500, along with a look at top holdings in the top-performing funds.

The US Department of War rules the skies. This aerial military supremacy has enforced the Trump Doctrine that has ended 8 international wars and kept US military casualties at zero.

The space economy is taking off as innovation, SpaceX IPO buzz and Moon missions fuel sector growth. Here are ETFs to ride the sector's rapid growth and momentum.