While Elon Musk’s rocket company may dominate headlines in the modern space race, it is far from the only option for investors looking to gain exposure. The sector spans satellite networks, defence and intelligence contractors, communications infrastructure and the technology firms supporting everything from Earth observation to deep-space exploration.
Publicly listed companies with links to the industry range from established aerospace giants such as Lockheed Martin and Northrop Grumman to newer players including AST SpaceMobile and Rocket Lab.
But is investing in space a smart long-term opportunity, or are investors at risk of getting carried away by the latest market trend?
Why investors are looking skywards
Advances in technology have transformed space from the preserve of governments into a fast-growing commercial industry. Morgan Stanley estimates the global space economy could be worth $1 trillion by 2040, driven by growing demand for satellite communications, Earth observation, navigation and defence capabilities.
The big challenge for investors is separating genuine long-term growth opportunities from short-term hype.
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“Space excites people because it is the great unknown and SpaceX has a blueprint to turn dreams into dollars. NASA’s successful Artemis II mission earlier this year has also driven renewed interest in space among the public,” says Dan Coatsworth, head of markets at AJ Bell.
How to invest in the space sector
To gain exposure to space, investors can invest directly in aerospace and defence giants with significant space operations.
Another option is to choose specialist funds and exchange-traded funds (ETFs) that provide broader exposure to the space economy, allowing investors to spread their money across a range of space-related businesses rather than relying on a single company.
These are available through investment platforms such as Aviva, which won the best overall investment platform at the Your Money Investment Awards 2026. Aviva offers ETFs such as the Procure Space UCITS ETF, VanEck Space Innovators UCITS ETF, WisdomTree Space Economy UCITS ETF and ARK Space Exploration & Innovation ETF.
Investors should also consider investment trusts that have exposure to private companies developing space technology. These can provide access to businesses that aren’t available on public stock markets, although this comes with additional risks around valuations and liquidity.
How can I invest in SpaceX?
SpaceX floated on the Nasdaq on 12 June, with shares priced at $135 each. The IPO raised around $75bn, making it the largest stock market listing on record. Shares were trading at about $153 at the time of writing (29 June).
SpaceX (SPCX) will join the Nasdaq 100 on 7 July, making it the fastest company ever to be added to the index. The listing values the company at approximately $1.77 trillion making SpaceX one of the most valuable publicly traded companies in the US.
Shares can be bought through a number of UK investment platforms that offer access to US-listed stocks. These include Trading 212, AJ Bell, Hargreaves Lansdown, Interactive Investor, Freetrade and IG.
Hargreaves Lansdown won best Lifetime Investment ISA provider at the Your Money Investment Awards 2026.
“SpaceX’s business model is focused on getting satellites, cargo, and humans into space, and then utilising its own fleet of satellites to provide communication services and potentially data centres in the future,” says Coatsworth, “There is no other company doing what SpaceX does on the same scale, which could be a key appeal to existing and potential investors.”
The risks behind the excitement
As with many emerging industries, there is a risk that expectations run ahead of reality. Many space companies are still unprofitable, meaning their valuations are based more on future growth potential than current earnings.
The sector is also highly volatile, with share prices often moving sharply on news about government contracts, launches or regulation. Because there are relatively few listed space companies, specialist funds can be concentrated in a small number of holdings, increasing risk.
Geopolitical tensions also play a role, given the industry’s close links to defence and national security, while valuing private space companies can be difficult due to the lack of transparent market pricing.
How can space form part of a diversified portfolio?
For most retail investors, space is probably best viewed as a satellite holding rather than a core investment.
A diversified portfolio should already provide some indirect exposure through broader global equity funds, many of which own aerospace, defence and technology companies involved in the space economy.
Investors who want more focused exposure should think carefully about how much of their portfolio they’re willing to allocate.
Space may be the next investment frontier, but the journey is unlikely to be plain sailing. High valuations, a limited choice of listed companies, and significant technological and geopolitical risks mean investors should expect a bumpy ride.
