The space economy is moving from science fiction to commercial reality. Launch costs have fallen sharply, satellite networks are becoming critical infrastructure, and governments and private companies alike are increasing investment across communications, defense, earth observation and exploration. The VanEck Space ETF (WARP) is designed to give investors targeted exposure to the companies building that ecosystem.

• What is the space economy?
• Why is the space economy a compelling investment theme right now?
• What is the VanEck Space ETF (WARP)?
• How is WARP different from other space ETFs?
• What parts of the space economy does WARP target?
• Why use a pure-play approach to investing in space?
• Is WARP focused only on U.S. companies?
• What does the portfolio look like?
• What role can WARP play in a portfolio?
• What are the main risks investors should keep in mind?
• How does WARP fit within VanEck’s thematic ETF lineup?

What is the space economy?

The space economy refers to the ecosystem of companies enabling and benefiting from activity beyond Earth’s atmosphere. That includes businesses involved in satellite communications, rockets and propulsion systems, earth observation, spacecraft design, payload delivery and other technologies tied directly to space infrastructure and services.

Why is the space economy a compelling investment theme right now?

Space is no longer driven solely by government programs. It is becoming a commercially scaled industry. Four trends are driving that shift:

• Falling launch costs.
• The rise of satellites as essential infrastructure.
• Increased defense and sovereignty spending.
• The growing role of AI in turning satellite data into usable intelligence.

What makes the theme more investable today is that the economics have changed. Reusable rockets have lowered the cost of getting to orbit dramatically, which has helped unlock more launches, more applications and broader commercial participation across the value chain.

What is the VanEck Space ETF (WARP)?

WARP is a passively managed ETF that seeks to track the MarketVector Space Index. The fund is designed to provide targeted exposure to global companies involved in space exploration, satellite communications, rockets and propulsion systems, and related technologies. The index follows a pure-play approach, rather than including broad aerospace or defense conglomerates where space represents only a small part of the business.

How is WARP different from other space ETFs?

Legacy ETFs in the market are largely centered around space, aerospace and defense. WARP is built around a pure-play, rules-based approach. The index requires companies to derive at least 50% of revenues from space-related activities, which is intended to keep exposure focused on the actual space economy rather than diversified industrial or defense names with only incidental exposure.

The methodology is also designed with investability in mind. The index targets a focused portfolio, uses modified free-float market cap weighting, applies single-security caps and rebalances quarterly.

What parts of the space economy does WARP target?

WARP’s investment universe is organized around the building blocks of the commercial space ecosystem, including satellite communications, rockets and propulsion, earth observation and data, and space exploration.

Why use a pure-play approach to investing in space?

A pure-play approach matters because the space theme is still relatively early and often diluted inside broader aerospace, telecom or defense exposures. WARP’s underlying index uses a 50% revenue threshold to identify companies whose businesses are materially tied to space-related activity. The goal is to give investors more direct exposure to the theme itself, rather than to large, diversified companies where space may only be a small piece of the story.

Is WARP focused only on U.S. companies?

No, WARP is global. That approach reflects the fact that the space economy is not being built by one country alone and allows the fund to capture a broader set of businesses across the value chain.

What does the portfolio look like?

The portfolio is intended to capture multiple layers of the space value chain. Potential holdings include companies tied to satellite communications, launch infrastructure, earth observation, payload delivery and broader exploration-related activity.

What role can WARP play in a portfolio?

WARP can serve as a targeted thematic allocation for investors looking to access one of the more underrepresented areas of global innovation. Rather than trying to pick individual winners in a rapidly evolving industry, the ETF format offers diversified exposure across a range of companies tied to launch, communications, data and exploration. For investors who believe space is shifting from government-led ambition to commercial infrastructure, WARP offers a way to express that view in a single vehicle.

What are the main risks investors should keep in mind?

Like any thematic equity strategy, WARP comes with meaningful risks. Those include regulation, government spending, supply chain disruptions, cybersecurity, geopolitics, skilled labor shortages, technological change and financing needs. The fund is also non-diversified and passively managed, which can increase concentration risk and limit flexibility if a holding faces adverse developments. Foreign securities, depositary receipts, and small- and mid-cap companies may also add to the risk profile.

How does WARP fit within VanEck’s thematic ETF lineup?

WARP adds a distinct industrial and infrastructure-oriented layer to VanEck’s thematic ETF suite. Where other strategies may target semiconductors, digital assets, robotics or digital-native consumer behavior, WARP is centered on the physical and communications infrastructure enabling the next phase of the space economy. In that sense, it fits with VanEck’s broader approach of identifying structural shifts early and translating them into targeted thematic exposures.

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