It is mostly about satellites
Rocket launches are the visible part, but they are a small share of the money. The bulk of the space economy is satellites and what they do: television, internet access, navigation, weather forecasting and imaging.
Cheaper launches have made it practical to put thousands of small satellites in orbit, which is what is driving the growth.
Old aerospace and new space
Large aerospace and defence contractors have built satellites and rockets for decades. Space is one division among several, and their shares mostly follow defence and aviation.
Newer specialists do only space. They can grow quickly but many are still spending more than they earn, and depend on raising money to keep going.
The famous names may not be for sale
Not every important space company is listed on a stock market, and privately owned companies cannot be bought through an ordinary broker.
Some funds hold companies that own stakes in private space businesses, or suppliers to them. That is an indirect link, and worth understanding before relying on it.
Governments pay most of the bills
Space agencies and defence departments are the largest customers for launches and satellites. Budgets and priorities change with governments.
Commercial demand, particularly satellite internet, is growing but intensely competitive, which pushes prices down.
The parts of the space economy
Launch
Rockets that carry satellites into orbit.
For example: Rocket Lab
Satellite communications
Sell internet, phone and broadcast links from orbit.
For example: Iridium, Viasat, SES
Satellite and spacecraft makers
Build satellites and their parts, often alongside defence work.
For example: Airbus, Northrop Grumman, Thales
Earth observation
Photograph and measure the planet and sell the data.
For example: Planet Labs
Navigation
Use satellite positioning in products people and businesses buy.
For example: Garmin, Trimble
Companies are listed to show what each category means. They are not recommendations, and the list is not complete.
Three ways to invest
There is no single right route. Many people combine them, and plenty decide a broad global fund is all they need.
- 1
Buy individual shares
Pick one or more space companies and buy their shares through a broker or investing app.
- Good for
- Simple to understand. You own exactly what you chose.
- Watch out for
- If you only hold a few companies, one bad result can do real damage. Picking winners is hard, even for professionals.
- 2
Buy a ready-made fund
A fund (often an ETF) holds dozens of companies in one purchase. Examples include the ARK Space Exploration & Innovation ETF (ARKX) and Procure Space ETF (UFO) in the US, and the VanEck Space Innovators UCITS ETF (JEDI) in the UK and Europe.
- Good for
- Instant spread across many companies, with very little effort.
- Watch out for
- You get what the fund provider chose, including companies you may not want. Themed funds usually charge more than broad trackers, so check the yearly fee and the top ten holdings. Which funds you can buy depends on where you live.
- 3
Build your own portfolio
Choose your own mix of companies and how much of each, then buy them through your broker. This is what Arithmos helps with: describe the mix in a sentence and it builds and tests one for you to consider.
- Good for
- You decide exactly what is in and what is out, and you can see the reason for every company.
- Watch out for
- More to look after than a fund. Buying many separate shares can cost more in dealing fees, and a tested result is a simulation, not a promise.
What $100 would have done
To make this concrete, here is a real portfolio from this area that anyone can open on Arithmos, and what $100 put into it would be worth. It is one example, shown as it is, whether it went up or down.
If you’d put $100.00 into this portfolio of 12 companies…
The risks
- Unprofitable companies. Many specialists rely on raising new money.
- Technical failure. A failed launch or satellite can be very costly for a small company.
- Government budgets. A large share of revenue depends on public spending.
- Competition. Satellite internet in particular is becoming crowded.
- Loose definitions. Space funds often hold companies with only a small connection to space.
Try it yourself
The quickest way to understand a portfolio is to look at one. Here is how to turn this guide into something you can inspect.
- 1
Start from the idea
The button below opens the builder with this guide's idea already typed in. Change any part of it: the number of companies, the countries, the limit per company.
- 2
Read the reason for every company
You get a list of companies, how much of each, and a plain-English reason for each pick. If one looks wrong to you, you can ask for it to be changed.
- 3
Look at the bad years, not just the good ones
The portfolio is replayed against real past prices. Check the biggest fall along the way, and ask yourself whether you could have sat through it.
- 4
Decide for yourself
If you want to act on it, you buy the shares yourself through your own broker. Arithmos never holds your money or places trades.
“Companies that earn a meaningful share of their money from space: launch, satellites, satellite communications and Earth observation. 15 companies worldwide, no single one over 10%.”
Browsing portfolios other people have published is free. See pricing for what building your own includes. A tested result is a simulation using past prices. It is not a forecast and not a recommendation.
Common questions
Can I buy shares in every space company?
No. Only companies listed on a stock market can be bought through an ordinary broker, and some of the best-known space businesses are privately owned.
Are defence companies space investments?
Partly. Several large defence contractors have significant space divisions, but most of their revenue comes from other work, so their shares mainly follow defence spending.
Why are space stocks so volatile?
Many are young companies spending heavily before they are profitable. Their prices react sharply to launch results, contract announcements and how easy it is to raise money.
