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

McKinsey projects the space economy will expand from about $630 billion in 2023 to $1.8 trillion by 2035, and ARK Invest’s actively managed ARKX ETF offers concentrated thematic exposure to that opportunity—satellites, launchers, GPS and related beneficiaries—with a five-year innovation-horizon approach. The fund, launched in March 2021, holds about $448 million across 25 stocks with its top five positions—Kratos (10.3%), Rocket Lab (8.6%), AeroVironment (8.5%), L3Harris (7.2%) and Teradyne (6.4%)—and the top 10 accounting for roughly 64% of assets; ARKX is up ~33% since inception, ~52% over the past year and ~38% YTD in 2025 versus the S&P 500’s ~13% recent gains, and charges a 0.75% expense ratio. The ETF provides a leveraged way to play secular tailwinds—global satellite connectivity, positioning tech and AI-driven demand—but remains exposed to significant industry overlap and competition, making a diversified, concentrated ETF an efficient vehicle for investors seeking space exposure.

Analysis

McKinsey projects the space economy will expand from about $630 billion in 2023 to $1.8 trillion by 2035, and ARK Invest positions ARKX as an actively managed, five-year-horizon vehicle to capture that secular opportunity across satellites, launchers, GPS and related beneficiaries. The fund launched in March 2021 and is presented as thematic exposure to orbital and sub-orbital aerospace, enabling technologies, and downstream beneficiaries such as agriculture and internet access.

ARKX has roughly $448 million in assets, holds 25 equities with the top 10 representing ~64% of the fund, and its largest weights are Kratos (10.3%), Rocket Lab (8.6%), AeroVironment (8.5%), L3Harris (7.2%) and Teradyne (6.4%). Performance has been strong relative to the S&P 500: ~33% since inception, ~52% over the past year and ~38% in 2025 versus the S&P’s ~13% over comparable periods, while charging a 0.75% expense ratio.

The investment case rests on clear secular drivers cited in the article—global satellite connectivity, increased positioning/navigation demand and AI/ML use—but the fund is exposed to meaningful industry overlap and concentration risk given its small number of holdings and clustered weightings. The 0.75% fee is above passive peers and is justifiable only if active outperformance persists, so investors should weigh volatility and manager risk against the theme-driven upside.

Key Decisions for Investors

• Investors with a multi-year horizon who want direct thematic exposure to the growing space economy (McKinsey: $630B to $1.8T) should consider a starter position in ARKX given its concentrated, active exposure and strong ~52% one-year and ~38% YTD performance
• Limit allocation size to discretionary capital (the article’s $1,000 example) and treat ARKX as a satellite holding because 25 stocks and ~64% top-10 concentration create concentrated idiosyncratic risk
• Actively monitor the fund’s largest holdings (KTOS, RKLB, AVAV, LHX, TER) and industry catalysts—satellite connectivity rollouts, positioning/GPS adoption and AI/ML demand—as these are the primary drivers cited for further upside
• Re-evaluate or hedge the position if active performance falters or if the 0.75% expense ratio and competitive overlap begin to materially undercut returns relative to lower-cost or broader alternatives