Investors choose between ARK Defense and Space Innovation ETF (NYSEMKT:ARKX) and US Global Jets ETF (NYSEMKT:JETS) must weigh a purely aerial approach against a broader, technology-intensive space and defense strategy.
Both exchange-traded funds target the broader aerospace theme, but through fundamentally different lenses. While the US Global Jets ETF focuses on the day-to-day operations of commercial aviation and global carriers, the ARK Space & Defense Innovation ETF expands its reach to orbital technology, suborbital flight and defense innovation. Understanding these nuances is essential because the airline industry often responds to consumer demand for travel, while space and defense innovation can be driven by government contracts and technological advances. This comparison explores how these different exposures influence costs, risk profiles and portfolio composition for long-term holders looking to capture growth in the skies and beyond.
Snapshot (cost and size)
|
Metric
|
JETS
|
arkx
|
|
Editor
|
USA world
|
ARK
|
|
Expense ratio
|
0.6%
|
0.75%
|
|
1 year return (as of May 27, 2026)
|
28.7%
|
71.8%
|
|
Dividend yield
|
0.8%
|
None
|
|
Beta
|
1.18
|
1.38
|
|
Assets under management (AUM)
|
$865.2 million
|
717.3 million dollars
|
Beta measures price volatility relative to the S&P 500; Beta is calculated from five years’ monthly returns. The 1-year return represents the total return over the past 12 months. The dividend yield is the distribution yield for the trailing 12 months.
The ARK Space & Defense Innovation ETF is the most expensive option, charging a 0.75% expense ratio compared to the 0.6% fee charged by the US Global Jets ETF. While the 0.15 percentage point difference may seem minor, it could impact total returns as compounding takes effect over a long-term investment horizon.
Return and Risk Comparison
|
Metric
|
JETS
|
arkx
|
|
Maximum reduction (4 years)
|
(35.2%)
|
(25.6%)
|
|
$1,000 growth in 4 years (total return)
|
$1,423
|
$2,411
|
What’s inside?
The ARK Space & Defense Innovation ETF (ARKX) focuses on the orbital and suborbital aerospace sector, with 56% of its portfolio in the industrial sector and 27% in technology. He manages a portfolio of 45 holdings and his largest holdings include rocket laboratory (NASDAQ:RKLB) at 9.39%, Advanced Microdevices (NASDAQ:AMD) at 7.75%, and L3Harris (NYSE: LHX) at 7.15%. This actively managed fund was launched in 2021.
The US Global Jets ETF (JETS) tracks a more industry-specific group of 42 holdings, with 89% of its holdings in industries. His most important positions include Delta Airlines (NYSE:DAL) at 12.66%, American Airlines Group (NASDAQ:AAL) at 12.62%, and United Airlines Holdings (NASDAQ:UAL) at 11.07%. The portfolio is designed to offer exposure to the entire global airline ecosystem, including regional carriers and aircraft manufacturers, which explains its strong concentration in industrial companies. This fund was launched in 2015.
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That seems like the best buy
The ARK Space & Defense Innovation ETF (ARKX) and the US Global Jets ETF (JETS) are exchange-traded funds (ETFs). However, they cover slightly different market segments. Let’s explore how they compare to each other.
First, there is ARKX. This fund is focused on the space and defense sectors. In fact, this fund leans toward the emerging technology theme, with major holdings in private space launch company Rocket Lab, semiconductor powerhouse AMD and artificial intelligence (AI) stalwart. Palantir. The fund has performed particularly well over the past year, generating a total return of almost 72%. However, since its inception in 2021, the fund has generated a total return of 84%, with a compound annual growth rate (CAGR) of 12.6%. That’s slightly less than the benchmark S&P 500 index, which generated a total return of 105%, with a CAGR of 14.9% over the same period. Lastly, the fund has a high expense ratio of 0.75% and does not pay dividends.
Next up are the JETS. This fund covers the airline sector. Top holdings include major US airlines such as American Airlines, Delta Air Lines and United Airlines, as well as smaller carriers such as Loyal trips, Alaska Airand West Sky. The fund has underperformed since its inception in 2015. During that time, JETS has generated a total return of 28%, with a CAGR of just 2.3%. The S&P 500, by contrast, generated a total return of 332% over the same period, for a CAGR of 14.1%. Finally, the fund has an expense ratio of 0.60% and a dividend yield of 0.8%.
In short, JETS and ARKX differ in many ways. ARKX is a growth-oriented fund, focused on emerging technologies. JETS is a classic sector fund that primarily covers the US domestic air travel industry. ARKX has a significant performance advantage, making it the choice for most growth-oriented investors. However, the fund’s high expense ratio (0.75%) may give pause to cost-conscious investors.
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Jake Lerch has positions in Rocket Lab and has the following options: Long $30 December 2026 puts on Rocket Lab. The Motley Fool holds and recommends Advanced Micro Devices, L3Harris Technologies, Palantir Technologies, and Rocket Lab. The Motley Fool recommends Alaska Air Group, Allegiant Travel, and Delta Air Lines. The Motley Fool has a disclosure policy.
ARKX vs. JETS: ARKX Overtakes JETS with Higher Returns was originally published by The Motley Fool
