Choosing the Better Space ETF: Tema's NASA Focused on Space Innovators or First Trust's MISL Targeting Aerospace and Defense
Tema's active strategy targets high-growth space companies but carries higher volatility and fees. First Trust offers broader diversification with lower costs and drawdown risk.
Investors have options when seeking exposure to the growing space economy with the Tema Space Innovators ETF (NASA) and First Trust Indxx Aerospace & Defense ETF (MISL). NASA is a newer fund, having launched in March 2026, so its history of performance is limited. However, it charges a lower expense ratio of 0.75% versus MISL's 0.6%, which could help preserve returns over time.
NASAs holdings are focused on space-based companies, with the largest positions in Rocket Lab and Space Exploration Technologies. MISL, launched in 2022, is slightly more established with holdings of both space stocks like SpaceX and established aerospace and defense firms for stability. It has delivered a 1-year return of about 13%, including dividends.
For those willing to accept higher volatility for the chance at outsized returns, NASA may appeal. But for conservative investors seeking more stability with lower costs, MISL could be the better choice. Ultimately, the decision depends on investment goals and risk tolerance.
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