Space Defense ETF ARKX Debuts as UCITS on Borsa Italiana

Investors in Europe gain a new way to access innovation in security and orbit with the launch of the space defense ETF ARKX on Borsa Italiana.

ARKX, an active UCITS ETF at the crossroads of space and defense

ARK Invest Europe has listed the ARK Space & Defence Innovation UCITS ETF (ARKX) on Borsa Italiana, opening a new route for investors interested in the convergence between advanced technology, security and the space industry. The fund is the first actively managed UCITS product focused specifically on innovation in the defense and space sectors, with a dynamic approach centered on emerging technologies reshaping global power balances.

“Defense is entering a new era. Artificial intelligence, robotics and energy technologies are converging to transform space and security. The world’s main militaries are moving from industrial hardware to intelligent and software-defined systems, cheaper and more adaptable. This convergence rewrites the costs of defense and transforms deterrence. With ARKX we offer investors active exposure to the technologies that are redefining security in the 21st century,” commented Cathie Wood, founder, CEO and Chief Investment Officer of ARK Investment Management.

Defense and space: how innovation is changing the industry

The starting point of the new ARKX proposal is the radical transformation underway in the defense and space industry.

The most advanced armed forces are shifting from heavy, industrially conceived systems toward lighter, intelligent and modular technologies based on software, autonomous robotics, artificial intelligence and next-generation energy systems. Moreover, space infrastructures are moving from simple logistical and communication support to becoming central platforms of the data economy and national security.

In this context, the defense-space frontier is no longer compartmentalized. The convergence between AI, robotics and energy capabilities enables the development of dual-use systems, solutions usable in both civilian and military applications. It is a profound change that rewrites costs, strategic approaches and deterrence in an era marked by geopolitical competition and a rapid increase in demand for satellite infrastructure.

“This fund focuses on innovators, not incumbents. Through active management we invest in scalable technologies such as small satellites, autonomous platforms and next-gen energy systems that redefine strategic advantage. This reflects our belief that innovation is the most effective defense in an era of rapid technological change,” said Rahul Bushan, Global Head of Investment Products. That said, the emphasis remains on disciplined selection rather than broad index replication.

ARKX aims to capture precisely these structural trends. The objective is to identify the actors leading the change, not those following it: companies capable of drastically reducing the costs of access to space, accelerating automated production and introducing agile operational models to support global critical infrastructure. Unlike many traditional aerospace and defence ETFs tied to large indices, ARKX does not replicate historical benchmarks but applies an active, high-conviction approach. This allows the management team to make rapid, calibrated rotations toward the most promising segments, adapting to the pace of technological progress, especially in areas where artificial intelligence and military robotics advance faster than traditional industrial sectors.

How ARKX invests in innovation and dual-use technologies

The management philosophy behind the ETF is built on three main pillars: innovation, scalability and dual civilian-military utility. However, these concepts are applied with strict fundamental analysis and attention to long-term disruption 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, terrestrial and aerial autonomous platforms, advanced communication technologies and next-generation energy systems. The focus shifts from industry incumbents to a new generation of companies able to exploit algorithms, miniaturization and advanced materials to gain competitive advantages in both civilian and defense applications.

This strategy finds a clear application in the growing small-satellite market, now essential for communications, Earth observation, cybersecurity and data management. ARKX identifies this segment as one of the main centers of defense-space innovation, backing players that develop components, infrastructure and software supporting orbital missions. Moreover, the same approach is applied to autonomous systems such as military drones, robotic platforms and unmanned naval systems, whose adoption is accelerated by integration with artificial intelligence.

From a geographic standpoint, the fund adopts global exposure without explicit regional constraints, selecting innovative companies in the United States, Europe and major Asian tech hubs. Active management enables rapid incorporation of new opportunities in high-growth areas such as electric propulsion, ultra-light materials used in aerospace and next-generation satellite networks dedicated to distributed AI. This flexible mandate underpins the fund’s positioning as a defense space innovation vehicle.

UCITS structure, fees and access for European investors

For European investors, ARKX represents a new way to access a strategy that ARK has managed in the U.S. market since 2021, now translated into UCITS format. The ETF carries a total expense ratio (TER) of 0.75%, aligning with other specialist thematic funds. Moreover, its Article 8 positioning under the SFDR regulation adds a distinctive element in a defense fund landscape largely dominated by Article 6 products lacking advanced ESG screening.

This structure is designed to provide European investors access to an actively run space and defense strategy within a familiar regulatory framework. The combination of UCITS rules, an accumulation share class and ESG integration aims to make the product suitable for a broad range of institutional and professional clients seeking exposure to innovation linked to security and orbit.

An ESG framework tailored to a defense-space ETF

A central feature of ARKX is the integration of sustainability and governance considerations into its investment process. The fund applies a rigorous framework combining SRI exclusions and ESG analysis based on six proprietary metrics.

Producers of controversial weapons, companies involved in nuclear programs of non-signatory states to the Non-Proliferation Treaty, and companies deriving more than 5% of revenues from fossil fuels, tobacco, gambling, alcohol and adult entertainment are excluded.

The ETF also evaluates governance quality, controversies and compliance with international standards such as the UN Global Compact and OECD Guidelines. In addition, it incorporates into the research process a block dedicated to human capital analysis, labeled “People, Management and Culture”. This approach allows investors to combine exposure to the defense-space sector with ESG criteria aligned with European demand, effectively positioning ARKX as an esg defense fund within a sensitive asset class.

“After surpassing $1 billion of assets under management in Europe, the launch of ARKX—which embodies the technological convergences between space and defense—was a natural step as we approach the next phase of launches planned for 2026.

We have many highly innovative products in the pipeline,” concluded Stuart Forbes, Head of ARK Invest Europe and Global Head of Distribution. That said, ARK signals that this ETF is only one element of a broader roadmap.

Portfolio structure and top ten holdings

The ARK Space & Defence Innovation UCITS ETF (ARKX), identified by ISIN IE000AON7ET1, is an accumulation Article 8 ETF under SFDR. It was recently amended to include defense companies that produce non-controversial weapons, while maintaining its ESG filters. As of 4 December 2025, the fund held 28 stocks, with a concentrated top ten reflecting its high-conviction style.

The top ten holdings at that date were: Teradyin 7.98%, L3Harris Technologies 7.77%, Kratos Defense 7.59%, Rocket Lab 6.72%, AeroVironment 6.37%, Trimble 4.7%, Deere 4.68%, Palantir 4.28%, Amazon 4.21% and AMD 4.17%. Moreover, the diversification across hardware, software and data players illustrates the fund’s emphasis on the full defense-space value chain.

Outlook for space and defense innovation

Looking ahead, ARKX seeks to position itself at the intersection of advanced technology, national security and orbital infrastructure.

The space defense ETF combines an active managed etf approach with UCITS structure and ESG screening, targeting companies that benefit from dual-use technologies, automation and the declining cost of access to orbit. In summary, it offers European investors an actively managed, thematically focused vehicle to capture long-term trends in space and defense innovation.