The aerospace sector has been attracting strong interest on international markets for months. The SpaceX stock market listing has put the spotlight on all space companies, from launch providers to satellite businesses. Investors have sought exposure to the theme through various instruments, including individual stocks and dedicated funds. 2026, however, has delivered a surprise by rewarding the less intuitive choices.

A Year of Gains for the Space Sector and a Summer Collapse

Space companies advanced for a long time, driven by expectations surrounding SpaceX’s stock market debut. The move continued through June, when the listing reached the season’s high point. The collapse came immediately afterward, with July wiping out a large part of the gains. The August rebound then brought many stocks close to their levels at the start of the year. The strength of the theme remains intact, but the path has been anything but linear.

Individual names illustrate this roller coaster well, with results varying widely. Planet Labs is up +20.97% since January, while Rocket Lab has stopped at +13.62%. Intuitive Machines is up just +6.32%, while AST SpaceMobile remains in negative territory at -14.96%.

ETFs Have Outperformed Individual Stocks

The most interesting data point, however, concerns the comparison between ETFs and individual stocks. An ETF is an instrument bought and sold on the stock exchange like an ordinary stock, but it already contains many companies grouped together. A single purchase therefore provides exposure to the entire sector rather than to one individual stock.

In 2026, these ETFs have outperformed individual space stocks, with more contained fluctuations. The best performer was ROKT, up +38.57% since the start of the year. This ETF is not focused exclusively on space, however, as it combines space companies with businesses exploring the seabed. It is followed by UFO at +23.71% and the two defense ETFs, XAR at +18.50% and ITA at +14.06%.

The SpaceX Paradox Inside ETFs

There is also an aspect that overturns the interpretation most commonly held by investors. SpaceX is not included in all sector funds, but only in some of them. It is included in UFO and the two actively managed funds, namely NASA and ARKX. It is not included in ROKT, the two defense funds, or BOTZ, which focuses on robotics and artificial intelligence. Yet the funds that hold it in their portfolios have underperformed the others. The reason is simple and concerns SpaceX itself. Since its June listing, the stock has traded below its offering price, thereby weighing on those that hold it.

The Kensho Space Index: The Purest Gauge

Measuring the true strength of the space trade requires an instrument different from ETFs. The Kensho Space Index, identified by the ticker KMARSP, tracks only space companies. It is not a product that can be purchased, but a benchmark that tracks the performance of the sector. The index is up +45.54% since the start of 2026, more than any ETF considered above. The pure-play space version, without seabed companies and without the drag from SpaceX, is outperforming funds and rockets. The 2026 scenario is rewarding broad exposure more than a bet on an individual name.