These Stocks Are Going to the Moon. Should You Invest $1,000?

The space economy is rocketing to new heights. McKinsey estimates it will rise from about $630 billion in 2023 to $1.8 trillion by 2035. It includes technologies like satellites, launchers, GPS, and broadcast television, among many others.

The Ark Space Exploration & Innovation ETF (NYSEMKT: ARKX), managed by Cathie Wood's ARK Invest, is a great way to invest in an array of these space-related stocks. For those unfamiliar, ARK's exchange-traded funds (ETFs) are actively managed, focus on multidecade technological shifts (Ark calls them innovation platforms), and have a five-year investment horizon.

Ark says the ARKX fund aims for thematic exposure to space exploration, including orbital and sub-orbital aerospace, enabling technologies, and beneficiaries of aerospace activities, such as agriculture, Internet access, GPS, construction, and imaging. It will hold any stock, in fact, that can be seen as enabling, leading, or benefiting from products or services that occur beyond the surface of the earth.

If you have $1,000 available to invest that isn't needed for an emergency fund, to pay down monthly bills, or to pay off short-term debt, you might want to consider giving this ETF a closer look. Here's why.

Image source: Getty Images.

The fund has about $448 million in assets under management, all equities. As of Sept. 30, its largest holdings were:

1. Kratos Defense & Security Solutions (NASDAQ: KTOS), a defense contractor focused on satellite, space, and drone technologies (10.3% of the fund).
2. Rocket Lab (NASDAQ: RKLB), which makes rocket launch and control systems (8.6%).
3. AeroVironment (NASDAQ: AVAV), another defense contractor focused on drones and autonomous weapon systems (8.5%).
4. L3Harris Technologies (NYSE: LHX), which makes engines for NASA rockets, communications systems, and command and control systems (7.2%).
5. Teradyne (NASDAQ: TER), which sells automatic test systems (6.4%).

The top 10 holdings comprise almost 64% of the fund, though it currently holds 25 different stocks.

Strong recent performance

Ark launched the fund back in March of 2021, and it's up a little over 33% since inception. But its recent performance has been much more impressive. The fund is up about 52% over the past year and about 38% in 2025. The S&P 500 index, by comparison, is up 13.3% over the past year and 13.5% in 2025.

The ARKX ETF has an expense ratio of 0.75%, which is a bit on the high side for ETFs, but it's worth it if its recent stellar performance continues.

There's only upside for growth of space-related stocks, driven by growing satellite connectivity globally, more demand for positioning and navigation technologies on mobile phones, and rapidly increasing use of AI and machine learning. But there's also significant competition in the industry, with lots of overlap between firms on the technologies, systems, and services they provide.

That makes an ETF with two dozen stocks more attractive and worth a look by any smart investor with $1,000 to invest.

Matthew Benjamin has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AeroVironment, L3Harris Technologies, and Rocket Lab. The Motley Fool recommends Teradyne. The Motley Fool has a disclosure policy.