The ARK Space & Defense Innovation ETF (NYSEMKT: ARKX) has delivered a one-year total return of 71.8%, dramatically outpacing the U.S. Global Jets ETF (NYSEMKT: JETS) return of 28.7% as of May 27, 2026.
Investors choosing between the two funds must weigh a pure-play airline focus against a broader, tech-heavy space-and-defense strategy, with each ETF targeting aerospace through fundamentally different lenses.
ARKX carries a higher expense ratio of 0.75% compared to JETS at 0.60%, a gap that could compound meaningfully over a long-term investment horizon.
Despite its higher costs, ARKX has demonstrated stronger risk-adjusted performance, recording a maximum four-year drawdown of 25.6% versus a steeper 35.2% drawdown for JETS over the same period.
A $1,000 investment in ARKX four years ago would have grown to $2,411 on a total return basis, compared to $1,423 for the same investment placed into JETS.
ARKX is an actively managed fund launched in 2021, allocating 56% of its portfolio to industrials and 27% to technology across a total of 45 holdings.
Its largest positions include Rocket Lab (NASDAQ: RKLB) at 9.39%, Advanced Micro Devices (NASDAQ: AMD) at 7.75%, and L3Harris (NYSE: LHX) at 7.15%, reflecting its emphasis on space launch, semiconductors, and defense technology.
Since its inception in 2021, ARKX has generated a total return of 84% and a compound annual growth rate of 12.6%, which trails the S&P 500’s total return of 105% and CAGR of 14.9% over the same period.
JETS, launched in 2015, holds 42 positions with 89% concentrated in the industrials sector, with its largest allocations going to Delta Air Lines (NYSE: DAL) at 12.66%, American Airlines Group (NASDAQ: AAL) at 12.62%, and United Airlines Holdings (NASDAQ: UAL) at 11.07%.
The airline-focused fund has significantly underperformed since its 2015 launch, generating a total return of just 28% and a CAGR of 2.3%, against the S&P 500’s 332% total return and 14.1% CAGR over the same period.
JETS does offer a dividend yield of 0.8% on a trailing-12-month basis, while ARKX pays no dividend to shareholders.
JETS also carries a lower beta of 1.18 compared to ARKX’s beta of 1.38, indicating that the airline ETF exhibits somewhat less price volatility relative to the S&P 500.
ARKX holds assets under management of $717.3 million, while JETS is the larger fund at $865.2 million in assets under management.
For growth-oriented investors, ARKX presents a compelling performance edge, though its higher expense ratio of 0.75% remains a consideration for cost-conscious allocators evaluating the two funds.
