Space Industry ETF’s 33.5% hard landing

Mike Taylor

Managing Editor and Publisher

16 July 2026

The rapid price descent of Betashares Space Industry Exchange Traded Fund (ETF) has been used by ETF portfolio business, InvestSmart as an example of why investors should better understand investment themes.

Releasing its monthly review of the Australian ETF market InvestSmart chief executive, Ron Hodge noted that the Space Industry ETF was the top-performing ETF in May with a return of more than 30% but became the weakest performer last month, falling 33.5%.

In fact, the Space Industry ETF topped InvestSmart’s table of weakest performers in June, ahead of ETFS Global Lithium Miners ETF (-20.9%) and Global X Physical Silver ETF (-20.7%).

According to Hodge thematic ETFs can be useful for targeted exposure but investors should not confuse them for representing a long-term investment plan.

“Some investors buy thematic ETFs hoping fr quick gain, then sell when the value falls. That is the opposite of long-term investing,” he said.

According to InvestSmart, the Australian ETF market grew to $361.6 billion in June, up $8.1 billion, or 2.3%, over the month.

It said the number of ASX-listed ETFs rose from 451 in May to 458 in June, 70 more than a year earlier.

Net ETF inflows totalled $3.3 billion, down from $5.3 billion in May. Global equities attracted the largest inflows at $1.7 billion, followed by Australian equities at $993 million and fixed income at $703 million.

Hodge said investors are still adding broad global exposure, while also showing interest in income and defensive assets.

“Flows into fixed income and high-dividend ETFs suggest some investors are placing more weight on income, capital preservation and after-tax outcomes as they work through the practical implications of upcoming CGT changes.

“That is understandable, but investors still need to look at the whole portfolio. Income, growth and defensive assets all have a role to play, but the mix needs to match the investor’s goals, timeframe and risk profile.”

Commodities were the standout weak spot in June, falling 12.2% over the month and investors pulling $288 million from the category. Gold ETFs were among the casualties, with Global X Physical Gold (ASX: GOLD) down 7.96% for the month.

Crypto ETFs fell slightly further in market-size terms, down 13.5% in June. However, the flow data tells a different story; crypto ETFs still attracted $10 million of net inflows, suggesting the decline was largely driven by market performance rather than investors heading for the exits.

Despite the June pullback, commodities remain one of the stronger categories over the past year, with assets still up 34.5% year-on-year. The data shows how quickly sentiment can shift in more volatile parts of the ETF market, and why investors should be careful about chasing strong recent returns without understanding the risks.