European investors gain new ways to access security and orbital innovation with space defense launch ETF ARCS Listed on the Italian Stock Exchange.
ARKX, an active UCITS ETF at the intersection of space and defense
ARK Investment Europe I have listed ARK Space & Defense Innovation UCITS ETF (ARCS) italian stock exchangeopening new routes for investors interested in the convergence between advanced technology, security and the space industry. The fund is the first actively managed UCITS product with a specific focus on innovation in society. defense We will rebuild the world’s power balance with a dynamic approach centered on emerging technologies.
“Defense is entering a new era. Artificial intelligence, robotics, and energy technologies are converging to transform space and security. The world’s major militaries are moving away from industrial hardware to cheaper, more adaptable, and intelligent software-defined systems. This convergence will rewrite defense costs and transform deterrence. With ARKX, we are providing investors with positive exposure to technologies that are redefining security in the 21st century.” Cathie WoodFounder, CEO and Chief Investment Officer of ARK Investment Management.
Defense and space: how innovation is changing the industry
starting point for something new Archix This proposal is a fundamental transformation underway in the defense and space industry.
Cutting-edge militaries are transitioning from heavy, industrially devised systems to lightweight, intelligent, modular technologies based on software, autonomous robotics, artificial intelligence, and next-generation energy systems. Additionally, space infrastructure is transitioning from simple logistics and communications support to a central platform for the data economy and national security.
In this context, the defense space frontier is no longer compartmentalized. The convergence of AI, robotics, and energy capabilities enables the development of dual-use systems and solutions that can be used in both civilian and military applications. This is a significant shift that rewrites costs, strategic approaches, and deterrence in an era marked by geopolitical competition and rapidly increasing demand for satellite infrastructure.
“This fund focuses on innovators, not incumbents. Through active management, it invests in scalable technologies such as small satellites, autonomous platforms, and next-generation energy systems that redefine strategic advantage. This reflects our belief that innovation is the most effective defense in an era of rapid technological change.” Rahul BhushanGlobal Head of Investment Products. That said, the emphasis remains on disciplined selection rather than broad index replication.
ARKX aims to accurately capture these structural trends. The purpose is to identify those who lead change, rather than those who follow it. This means companies that can significantly reduce the cost of access to space, accelerate automated production, and deploy agile operating models that support the world’s critical infrastructure. Unlike many traditional aerospace and defense ETFs tied to large indexes, ARKX does not replicate historical benchmarks and applies an active, high-conviction approach. This allows management to make quickly tailored rotations towards the most promising segments while adapting to the pace of technological advancement, especially in areas where artificial intelligence and military robots advance faster than traditional industrial sectors.
How ARKX invests in innovation and dual-use technology
ETF’s management philosophy consists of the following three pillars. innovationscalability, and dual civilian and military utility. However, these concepts are applied with rigorous fundamental analysis and attention to long-term disruptions rather than short-term momentum.
ARKX selects companies active in key areas such as low-cost launch systems, orbital infrastructure, AI-based command and control software, autonomous ground and air platforms, advanced communications technologies, and next-generation energy systems. The focus will shift from industry incumbents to a new generation of companies that can leverage algorithms, miniaturization, and advanced materials to gain competitive advantage in both civilian and defense applications.
This strategy has clear applications in growing fields. small satellite marketnow essential for communications, earth observation, cybersecurity, and data management. ARKX recognizes this segment as one of the leading centers for defense space innovation, assisting players in developing components, infrastructure and software to support orbital missions. Additionally, the same approach is being applied to autonomous systems such as military drones, robotic platforms, and unmanned naval systems, with integration with artificial intelligence accelerating adoption.
From a geographical perspective, the fund takes global exposure and selects innovative companies from around the world without any clear geographical constraints. US, Europe Asia’s leading technology hub. Active management allows you to quickly incorporate new opportunities in high-growth areas such as electric propulsion, ultralight materials used in aerospace, and next-generation satellite networks dedicated to distributed AI. This flexible mission underpins the Fund’s positioning. defense space innovation vehicle.
UCITS structure, fees and access for European investors
for European investorsARKX represents a new way to access strategies that ARK has managed in the US market since 2021, now converted to UCITS format. The ETF’s total expense ratio (TER) is: 0.75%in collaboration with other specialized thematic funds. Additionally, the position of Chapter 8 under the SFDR regulations adds a unique element to the defense funding landscape, which is largely dominated by Chapter 6 products that lack a high degree of ESG review.
This structure is designed to provide: Access for European investors Towards a space and defense strategy that is proactively executed within a familiar regulatory framework. The combination of UCITS rules, cumulative share classes and ESG integration is intended to make the product suitable for a wide range of institutional and professional customers seeking exposure to security and trajectory-related innovations.
ESG framework tailored to defense space ETF
A core feature of ARKX is the integration of sustainability and governance considerations into the investment process. The fund applies a rigorous framework that combines SRI exclusions with ESG analysis based on six proprietary indicators.
Manufacturers of controversial weapons, companies involved in the nuclear programs of countries that are not signatories to the Non-Proliferation Treaty, and companies that derive more than 5% of their revenue from fossil fuels, tobacco, gambling, alcohol, and adult entertainment are excluded.
ETFs also assess the quality of governance, controversy, and compliance with international standards, including: United Nations Global Compact and OECD guidelines. Additionally, the research process incorporates a block dedicated to human capital analysis labeled “People, Management, and Culture.” This approach allows investors to combine exposure to the defense and space sector with ESG criteria aligned with European demands, effectively positioning ARKX. ESG defense fund Within the sensitive asset class.
“After exceeding $1 billion in assets under management in Europe, the launch of ARKX was a natural step as we approach the next phase of launches, planned for 2026.
We are developing many highly innovative products.” stuart forbesHead of ARK Invest Europe and Global Head of Distribution. That said, ARK shows that this ETF is just one element of a broader roadmap.
Portfolio composition and top 10 holdings
of ARK Space & Defense Innovation UCITS ETF (ARKX), identified by ISIN IE000AON7ET1an 8-article ETF based on SFDR. It was recently amended to include defense companies that manufacture non-controversial weapons while maintaining ESG filters. the current December 4, 2025the fund holds 28 stocks, with a concentration of the top 10 stocks reflecting its high-conviction style.
Here are the top 10 holdings for the day: Terradin 7.98%, L3 Harris Technologies 7.77%, kratos defense 7.59%, rocket lab 6.72%, aviation environment 6.37%, trimble 4.7%, Dear 4.68%, Palantir 4.28%, Amazon 4.21% AMD 4.17%. Additionally, diversification across hardware, software and data players demonstrates the fund’s focus on the complete defense and space value chain.
Prospects for space and defense innovation
Looking to the future, ARKX aims to position itself at the intersection of advanced technology, national security, and orbital infrastructure.
The Space Defense ETF combines: Actively managed ETF Our UCITS structure and ESG screening approach targets companies that benefit from dual-use technologies, automation, and lower costs of access to orbit. In summary, this provides European investors with an actively managed, thematically focused means of capturing long-term trends in space and defense innovation.
