The Tema Space Innovators ETF (NASA) began trading on March 30, 2026, and saw a 28.2% gain within five months. Despite this strong performance, the fund also faced a maximum drawdown of 46% over the same time, as noted by Nasdaq. In the last three months, it posted a 22% return, but the sharp ups and downs in value reflect the high volatility associated with this space-focused strategy.
Costs and holdings split the funds
The Invesco Aerospace & Defense ETF (PPA) is priced at a 0.58% expense ratio, which is lower than the 0.75% charge for the Tema Space Innovators ETF (NASA). PPA’s holdings include 62 companies, with significant allocations in GE Aerospace at 7.3%, Raytheon Technologies at 7.2%, and Boeing at 6.8%.
The NASA ETF consists of 38 stocks, with top holdings including Space Exploration Technologies at 16.8%, Rocket Lab at 10.2%, and Echostar at 9%. As a newly launched fund in 2026, it is non-diversified and steers clear of traditional defense contractors like L3Harris Technologies and Northrop Grumman, focusing on commercial space ventures and innovation.
Stability vs. risk in 10-year returns
Over the past decade, the Invesco fund has delivered a return of 17.8%. In the last three months, it added 6.8% to its value, showing a more consistent and stable return profile compared to the newer NASA fund. Due to its brief existence since March 2026, the Tema ETF lacks a long track record, making it difficult to gauge how it might perform during downturns. Its large drawdowns and limited number of holdings raise concerns for investors looking for less volatility.
PPA holds 96% of its investments in U.S. companies, with the remaining 4% in developed international markets. The Tema fund, by contrast, is split with 72% in the U.S., 27% in other developed markets, and just 1% in emerging markets. The Invesco fund’s strong focus on the U.S. reflects the increased government spending on defense, especially during ongoing military operations.
Which fund is the better buy in 2026
For 2026, the Invesco Aerospace & Defense ETF (PPA) is the suggested option, according to the source. Its long track record and investments in well-established defense firms make it a more dependable choice. The Tema ETF, on the other hand, is a newer fund that lacks proven resilience during downturns. Its performance has shown steeper declines than many high-risk investments, adding to concerns about its stability.
PPA includes major defense contractors not found in the Tema fund, such as General Dynamics and Northrop Grumman. These companies are benefiting from rising defense budgets, especially in the current climate of ongoing military campaigns. The Invesco ETF’s portfolio breakdown highlights its focus, with 90% in industrials and 10% in technology, underlining its emphasis on traditional aerospace and defense sectors.
The Invesco fund offers investors exposure to a broad range of companies in the aerospace and defense industries, with a strong focus on U.S. firms. Its long-term performance and lower costs make it appealing to those who prefer stability over high-growth speculation. On the other hand, the Tema ETF is positioned for potential upside in the commercial space sector but carries more risk due to its limited history and volatility.
The Tema Space Innovators ETF is actively managed and includes companies involved in launching satellites, satellite communications, and in-orbit technologies. Its selection process is based on fundamental research, and it aims to invest in businesses that show competitive strength in the space economy. However, its short time on the market and small number of holdings—ranging from 15 to 100—raise questions about its ability to perform consistently, particularly in challenging market conditions.
In contrast, the Invesco fund has a long history of success, with exposure to companies that are key players in defense and homeland security. It benefits from a stable, predictable source of revenue due to its ties with government contracts and increased global defense spending. For investors looking to balance risk and reward, the Invesco fund is considered the better buy in 2026, given its performance history and lower expense structure.
The difference in objectives between the two funds is clear. The Tema ETF seeks to capture the potential of emerging companies in the commercial space industry. In contrast, the Invesco ETF provides a more traditional approach, focusing on defense giants and long-established aerospace firms. While the Tema fund may offer higher growth potential, the Invesco fund is better suited for investors who prioritize stability and long-term performance.
Both funds explore the space industry, but in very different ways. The Invesco Aerospace & Defense ETF represents a mature market with strong government backing and a large portfolio of diversified companies. The Tema Space Innovators ETF, meanwhile, represents a more niche market, focusing on commercial space innovation and the development of new technologies in the sector.
Investors must decide which path aligns with their goals. Those who prefer steady returns and a track record of performance may find the Invesco fund more appealing. Those who are willing to take on more risk in exchange for the potential of high growth may lean toward the Tema ETF. However, with the Tema fund’s limited history and sharp drawdowns, the Invesco fund appears to be the safer and more reliable option at this time.