A month ago, the ASX hosted zero space-themed exchange-traded funds.
Today it has one, and the Betashares Space Industry ETF (ASX: RCKT) has wasted no time making its presence felt.
RCKT units floated at $14 on 12 May 2026.
They now trade much higher, with a gain of approximately 30% in May 2026.
The primary force behind that extraordinary run can be summarised in one word: SpaceX.
What is driving the RCKT ETF higher
SpaceX is targeting a Nasdaq debut around 12 June 2026 under the ticker SPCX.
The company is aiming for a valuation of between US$1.7 trillion and US$2 trillion.
This would make it the largest stock market debut in history.
Every development in the SpaceX IPO process has sent the RCKT ETF higher, as investors use it as the most accessible proxy for the space economy available on the ASX.
RCKT tracks the Solactive Space Industry Index, which holds 28 companies across the global space economy.
Its two largest positions are Rocket Lab USA and AST SpaceMobile at 12.6% each.
Both have delivered extraordinary returns over the past year.
Rocket Lab has risen more than 440% over twelve months.
AST SpaceMobile has surged on confirmation of its first commercial satellite communications service with major US carriers.
The underlying Solactive Space Industry Index returned 249% over the twelve months to 31 May 2026.
This makes it one of the strongest performing thematic indices in the world.
What Betashares CEO said about the RCKT ETF
The timing of RCKT’s launch was no accident.
Alex Vynokur, CEO of Betashares, said at launch:
Once driven primarily by government agencies, the space industry is increasingly shaped by commercial companies launching rockets, building satellite networks and providing critical data from orbit. With falling launch costs expanding what is commercially possible, and anticipated IPOs such as SpaceX’s on the horizon, RCKT is designed to capture the range of opportunities emerging in the global space industry.
Furthermore, McKinsey and the World Economic Forum project that the global space economy could reach $1.8 trillion by 2035.
That long-term growth trajectory underpins the case for RCKT beyond the near-term SpaceX excitement.
Will RCKT hold SpaceX after the IPO?
This is the question every RCKT investor is asking.
The answer is: possibly, but not guaranteed, and not right away.
RCKT is designed to track the Solactive Space Industry Index, which has specific rules about index inclusion.
SpaceX would need to meet those criteria after listing before RCKT could hold it.
That process could take months.
In the meantime, investors using RCKT as a SpaceX proxy are buying the broader space economy rather than SpaceX directly.
That may actually be a better outcome.
SpaceX is expected to be priced at a demanding valuation at IPO, with Elon Musk aiming to allot up to 30% of shares to retail investors.
IPO day prices can reflect peak enthusiasm rather than fair value.
A diversified basket of space companies through RCKT provides exposure to the theme without the concentrated IPO risk.
The risks
The history of space investing includes spectacular failures alongside the successes.
Virign Galactic surged dramatically during the meme stock mania of 2021 before crashing more than 98% from its peak.
RCKT’s top holdings, Rocket Lab and AST SpaceMobile, are both pre-profit companies whose valuations reflect enormous future potential.
If the SpaceX IPO disappoints or if the broader technology sector rotates lower, RCKT units could give back a significant portion of recent gains quickly.
The RCKT ETF charges a management fee of 0.57% per annum and does not yet have a distribution history, given its recent launch.
Foolish Takeaway
The RCKT ETF has delivered returns in three weeks that most funds take years to achieve.
The SpaceX IPO is the immediate catalyst, but the underlying strength of the space economy and the remarkable performance of its holdings suggest this is more than a single-event trade.
For investors comfortable with high volatility and a long time horizon, the RCKT ETF offers an accessible way to participate in what could be one of the defining investment themes of the next decade.
The post This ASX ETF has soared because of the upcoming SpaceX IPO appeared first on The Motley Fool Australia.
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Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended AST SpaceMobile and Rocket Lab. The Motley Fool Australia has recommended Rocket Lab. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.