Outer space is emerging as a significant new investment frontier for global investors. This renewed focus follows a surge of excitement, highlighted by the recent safe return of astronauts from a moon trip. Anticipation builds for the potential market debut of Elon Musk’s rocket company, SpaceX, renowned for advanced space transportation, with an IPO as early as June targeting over $US2 trillion. Nations investing billions to return humans to the moon further fuels this sector-wide boom.
According to Morgan Stanley equity analyst Adam Jonas, “Space is back in a big way,” driven by scientific advancements, geopolitics, and economics. This is underscored by a dramatic increase in successful space launches, with 317 completed in 2025 alone. Government backing is also evident, with the US Space Force budget for 2027 jumping 77 per cent year-on-year to $US71 billion following an executive order for a moon return. Investment opportunities span raw materials, components, and satellite operators—the “picks and shovels” of this space race, exemplified by MP Materials and Alcoa.
Capitalising on this momentum, VanEck’s space innovators exchange-traded fund has soared over 220 per cent in the past year. Locally, Australian ETF provider Betashares, offering diverse exchange-traded funds, is set to launch the first space ETF on the ASX next month, under the ticker RCKT. Its indicative portfolio includes Nasdaq-listed Rocket Lab, whose shares have jumped over 350 per cent, alongside companies like EchoStar and Firefly Aerospace. Betashares chief executive Alex Vynokur noted this marks a “new era of commercial space exploration,” creating compelling long-term opportunities.
However, some industry observers urge caution. David Tuckwell, CIO at ETF Shares, suggests the rally is predominantly driven by SpaceX IPO speculation rather than fundamentals, warning some valuations “require planet-sized revenue and profit growth.” Minotaur Capital’s Thomas Rice views Rocket Lab as high-quality but fully priced at over 40 times forward revenue. He instead favours Firefly Aerospace, which recently achieved a commercial moon soft landing, trading at a more modest 12 times forward revenue.
