State Street SPDR S&P Kensho Final Frontiers ETF

ROKT

Market cap $228M

Space stopped being a government-only game years ago. It's now a real, investable industry – satellites beaming broadband to ships and planes, earth-imaging companies selling data to farms and defense contractors, and launch providers racing to put more payloads into orbit than ever before.

SpaceX's anticipated $1.75T+ IPO will add over 50% to the aerospace and defense industry's enterprise value, creating substantial rerating potential for space names. SPCX's valuation leans increasingly on AI and connectivity, with space operations becoming a smaller portion of the premium versus aerospace and defense peers.

As commercial applications in space multiply, investors may find opportunities that extend well beyond a potential SpaceX IPO. Here are some ETFs worth considering.

The commercial space sector now sits above $500 billion in market value, per NOAA's Office of Space Commerce, with order books for satellite operators, launch providers, and earth-observation companies stretching years into the future.

The State Street SPDR S&P Kensho Final Frontiers ETF delivers a 124% 1Y performance, driven by defense, industrial momentum, and space/deep-sea exposure. ROKT's diversified, AI-driven, equally-weighted portfolio leans heavily on top holdings, with over 40% in the top 10 and 53% in Aerospace & Defense. The forward P/E of 27.65x and EPS growth expectations (21.45% annualized) justify current valuations if growth materializes, but EPS revisions are not robust.

The rise of dedicated space ETFs is a relatively recent development. For years, investors seeking exposure to the space economy were largely limited to broad aerospace and defense funds.

The commercial space sector has crossed into recurring commercial revenue at scale.

Designed to provide broad exposure to the Industrials - Aerospace & Defense segment of the equity market, the State Street SPDR S&P Kensho Final Frontiers ETF (ROKT) is a passively managed exchange traded fund launched on October 22, 2018.

The commercial space economy has shifted from a story about government contracts to one about private revenue.

SpaceX is the ticker every retail investor is asking about, fueled by IPO chatter and Elon Musk headlines that refuse to quiet down.