Why investors should 'complement' their SpaceX ETFs with these other themes

In an interview with Yahoo Finance, Todd Sohn, chief ETF strategist at Strategas Asset Management, shared his outlook on the exchange-traded fund (ETF) market for the third quarter of 2026. Sohn suggested that investors holding SpaceX-related ETFs should consider complementary themes to enhance their portfolios.

Details

Sohn explained that SpaceX ETFs are heavily focused on the space sector, but investors can benefit from diversification into other sectors such as defense, infrastructure, and technology. He noted that these sectors could see growth supported by government spending and long-term trends.

Context

This recommendation comes at a time when the ETF market is seeing increased interest in thematic investing, particularly in areas related to innovation and technology. Space-themed funds like the ARK Space Exploration & Innovation ETF (ARKX) have experienced significant inflows in recent months.

What it means for investors

Investors may consider adding funds focused on defense (e.g., iShares U.S. Aerospace & Defense ETF - ITA) or infrastructure (e.g., Global X U.S. Infrastructure Development ETF - PAVE) to achieve better portfolio balance. However, investors should remain aware of the risks associated with thematic investing, including high valuations and volatility.