Categories Space

Comparing Outer Space and Air Space Investments: Is the ARKX ETF a Superior Choice Over the JETS ETF?

Investors comparing the ARK Space & Defense Innovation ETF (ARKX) and the U.S. Global Jets ETF (JETS) face a trade-off between a more expensive industrial-focused fund and a more specialized airline investment.

Snapshot of Costs & Size

Metric JETS ARKX
Issuer US Global ARK
Share Price $28.22 $32.12
Expense Ratio 0.60% 0.75%
1-Year Return 9.8% 17.4%
Dividend Yield 0.8% None
Beta 1.22 1.42
AUM $687.3 million $759.5 million

Performance & Risk Comparison

Metric JETS ARKX
Max Drawdown (4 yr) (35.2%) (25.5%)
Growth of $1,000 over 4 years $1,635 $2,364

Portfolio Composition

  • ARKX focuses on industrials (60%), technology (25%), and consumer cyclical (10%), targeting leaders in space exploration and defense, with key holdings like:

    • SpaceX at 10.99%
    • L3Harris Technologies Inc. at 6.45%
    • Kratos Defense at 6.06%
  • JETS specializes in the global airline sector, targeting commercial carriers and cargo operators. Its major holdings include:

    • Southwest Airlines at 11.05%
    • American Airlines at 10.64%
    • Delta Airlines at 10.59%

Conclusion

Choosing between ARKX and JETS depends on your investment strategy:

  • For higher growth potential with more volatility: ARKX might be appealing, although it comes with higher fees and speculative risks.
  • For stable returns and a conservative approach: JETS, with its lower expense ratio and dividend yield, offers a more secure option for long-term investment.

Learn More

For further details on ETF investing, check out this guide.

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