Summary
- South Korea’s asset-management industry is launching a wave of space-related ETFs as firms compete to attract Korean retail investors buying overseas stocks.
- TIGER US Space Tech and ACE US Space Tech Active are tied to a potential SpaceX listing, aiming to capture early post-listing gains and pre-IPO premium, respectively.
- Because the products differ in whether they include defense stocks and in the degree of portfolio concentration, investors should choose an ETF that matches their investment style.
Forecast Trend Report by Period
South Korean asset managers are rolling out a series of space-themed exchange-traded funds as they compete for local retail investors buying overseas stocks ahead of SpaceX’s planned June initial public offering. The products vary widely in how they approach SpaceX and other space-related shares, underscoring the need for investors to choose funds that match their objectives.
Mirae Asset Global Investments and Korea Investment Management will each list new ETFs on May 14, according to the financial investment industry on May 13. The products are TIGER US Space Tech and ACE US Space Tech Active. Shinhan Asset Management has also introduced SOL US Aerospace TOP10, while KB Asset Management is preparing a similar product.
Mirae Asset’s TIGER US Space Tech is a passive ETF that uses an artificial intelligence model to concentrate on 10 core space-related companies. The fund is structured so that, after SpaceX goes public, index rebalancing can add the stock immediately at a weight of up to 25%. That makes it relatively attractive for investors seeking gains in the early stage of the listing.
Korea Investment Management’s ACE US Space Tech Active uses an active strategy, allowing the fund manager to adjust holdings based on market conditions. Before SpaceX formally lists, the fund can gain indirect exposure to pre-listing upside by investing in companies that hold SpaceX stakes, such as Alphabet and Tesla. It also excludes defense contractors that make tanks and missiles, focusing only on technology companies dedicated to space businesses.
Other space-related ETFs already on the market are taking different approaches. Samsung Asset Management’s KODEX US Aerospace, listed in March, spreads investments across 20 stocks, including established defense names such as Lockheed Martin and Northrop Grumman. Hana Asset Management’s 1Q US Aerospace Tech, launched in November last year, casts the widest net by including not only space but also future transportation themes such as flying cars, including Joby Aviation. Timefolio Asset Management has managed TIME Global Space Tech & Defense Active since 2024 using an active strategy. The fund has returned 58% over the past year.
A person in the asset-management industry said a SpaceX listing could be a historic event that prompts a revaluation of the broader space industry. Still, investors need to be selective because the funds differ sharply in whether they include defense stocks and how concentrated their holdings are.
Park Ju-yeon, Hankyung.com reporter grumpy_cat@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
