Defense vs. Space ETFs by the Numbers: Assets, Fees and Flows

By Adam Patti, Chief Executive Officer, VistaShares | Published November 13, 2026

Defense ETFs and space ETFs share some companies and some customers, since governments buy both weapons systems and satellites. In the numbers, though, they are very different categories. Defense funds are more numerous and far larger, and they overlap more with the S&P 500. Space funds are smaller and hold more companies outside the index. This page compares the two with dated figures on size, fees, holdings and flows.

Figure	Defense ETFs	Space ETFs
Funds tracked by ETFIQ	22 (Nov 11, 2026)	10 (Nov 12, 2026)
Largest single fund, net assets	$12.5 billion (Nov 10 to 11, 2026)	$970 million (Nov 11, 2026)
Fee range, lowest to highest	0.10% to 0.75%	0.35% to 0.75%
Typical fund’s weight in S&P 500 stocks	40%, 18th highest of 54 themes	15%, 44th highest of 54 themes
Different companies among the funds’ ten largest holdings	110 across 22 funds, 31 of them in more than one fund	43 across the 9 funds ETFIQ can read
Net flows, month to Nov 11, 2026	$1.2 billion out, 8 of 22 funds counted	$659,000 out, 5 of 10 funds counted
Place in theme flow rankings, month to Nov 11, 2026	2nd largest outflow, 18.6% of all theme outflows	28th largest outflow
Net flows, week to Nov 11, 2026	$741 million out, 9 of 22 funds counted, the largest theme outflow	Not in the week’s theme rankings

Sources: counts, largest fund, fee ranges, S&P 500 weight and holdings, ETFIQ defense ETFs (data as of Nov 11, 2026) and ETFIQ space ETFs (data as of Nov 12, 2026); flows, ETFIQ flows by theme, as of Nov 11, 2026. Flows count only funds with daily share data.

What does each category hold?

Defense ETFs hold companies that sell weapons systems, munitions, electronics, ships, aircraft and services, mainly to governments. Many also hold aerospace companies, since the industry is often classified as aerospace and defense. Space ETFs hold companies that build rockets, satellites and ground equipment, or that sell services from orbit such as communications, imaging and navigation, along with some defense contractors with space units.

The overlap is real but partial. Our articles on the defense supply chain and the space economy describe each industry in more detail.

How many funds are there, and how large?

ETFIQ tracked 22 defense ETFs and 10 space ETFs. The largest defense fund held $12.5 billion, while the largest space fund held $970 million, so the biggest defense fund was more than 12 times the size of the biggest space fund.

Defense spending gives the category a large and steady customer base. The U.S. fiscal year 2027 budget request sought about $413.1 billion for procurement and about $343.7 billion for research, development, test and evaluation, within a total request of about $1.45 trillion including mandatory funding.¹ Our article on the U.S. defense budget explains these categories.

How do fees compare?

Defense ETF fees ran from 0.10% to 0.75%, and space ETF fees from 0.35% to 0.75%. The top of the range was the same, but the lowest-cost defense fund charged less than a third of the lowest-cost space fund. A fund’s own expense ratio, stated in its prospectus, is the figure that applies to an investor.

How much do these funds overlap with the S&P 500?

The typical defense ETF carried 40% of its weight in S&P 500 stocks, the 18th highest of the 54 themes ETFIQ measures. The typical space ETF carried 15%, the 44th highest. Space funds lean on smaller companies, foreign companies and firms outside the index, so they add more that a broad large-cap fund does not already hold.

Lower overlap can mean more diversification from an index fund, but it also tends to mean smaller and often younger companies, which can bring higher volatility and more company-specific risk.

How concentrated are their holdings?

Across all 22 defense funds, the ten largest holdings named 110 different companies, and 31 of those appeared in more than one fund. Across the 9 space funds ETFIQ could read, the ten largest holdings named 43 companies. The space category is smaller, with a shorter list of listed companies to choose from, which can make funds look alike.

Our article on the satellite supply chain explains which parts of the industry are publicly listed.

Where has money been flowing?

Defense ETFs had a net outflow of $1.2 billion in the month to November 11, 2026, across the 8 of 22 funds with daily data, the second largest outflow of any theme. In the week to November 11, the outflow was $741 million across 9 funds, the largest of any theme. Space ETFs saw a net outflow of $659,000 over the month across 5 of 10 funds, close to flat.

Flow figures are estimated from daily changes in shares outstanding and cover only funds that publish daily share counts. They show what investors did over the window, not what they may do next.

How should investors use these numbers?

Check the mix: some space funds hold defense contractors, and some defense funds hold space businesses.

Check the size: small funds can cost more to trade and are more likely to close.

Check the overlap: a defense fund overlaps more with an S&P 500 fund than a space fund does.

Our guide on how to evaluate a thematic ETF lists more checks. More thematic articles are in the Thematic ETF Guide.

Frequently asked questions

Do space ETFs hold defense companies?

Some do. Several large defense contractors build satellites and launch systems, so they can appear in both kinds of fund. Holdings lists show each fund’s mix.

Why are defense ETFs larger than space ETFs?

The defense category has more than twice as many funds, and its largest companies sell mainly to government buyers with large budgets. On ETFIQ’s figures, the largest defense ETF was more than 12 times the size of the largest space ETF.

Why do space ETFs overlap less with the S&P 500?

Many space companies are smaller, younger or listed outside the U.S., so they are not in the S&P 500. The typical space ETF carried 15% of its weight in S&P 500 stocks, against 40% for defense.

What does a fund flow measure?

Net flow is money investors added minus money they withdrew, estimated from changes in shares outstanding. It is separate from changes in the value of the holdings.

Are these figures complete?

They cover the funds ETFIQ tracks. Flow figures count only funds that publish daily share data, so they are a partial view of each category.

Where can I see each fund’s holdings?

Most ETFs publish their holdings on their own website, and all file them with the SEC. A fund’s holdings show how much of it is defense, space or something else.

Adam Patti, Chief Executive Officer of VistaShares, is also the founder of ETFIQ. ETFIQ does not accept payment from ETF issuers, and its figures are calculated from public filings and market data.

Cite this page: Adam Patti, "Defense vs. Space ETFs by the Numbers: Assets, Fees and Flows," VistaShares, updated November 13, 2026, https://www.vistashares.com/defense-vs-space-etfs-by-the-numbers/. Plain-text version.

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