SpaceX Slide Sends South Korea’s US Space ETFs Lower

South Korean exchange-traded funds holding newly listed SpaceX shares have fallen across the board since the US aerospace company’s market debut. SpaceX surged shortly after listing, then tumbled, dragging on ETF performance.

ETF Check data showed that, as of July 2, all South Korean-listed US space and aerospace ETFs with exposure to SpaceX posted negative returns over the past month.

Korea Investment Trust Management’s ACE US Space Tech Active lost 19.30% over the past month. The firm did not receive any shares in the initial public offering allocation. It later bought SpaceX stock in the market on the listing day, lifting the company’s portfolio weighting to 31.87%, its largest position.

Samsung Asset Management’s KODEX US Space Aerospace, which holds about 20% to 30% in SpaceX, fell 17.82% over the same period. Mirae Asset Global Investments’ TIGER US Space Tech dropped 32.35%, while Shinhan Asset Management’s SOL US Space Aerospace TOP10 lost 20.74%.

The synchronized decline in South Korean US space and aerospace ETFs followed increased volatility in SpaceX shares. The stock closed at $157.54 in New York on July 1, down 7.80% from the previous session.

SpaceX priced its IPO at $135 a share on June 12 and began trading on Nasdaq at $150. The stock later climbed as high as $225.64 intraday, only to slide to $147.11 within days. A June 22 disclosure that the company would issue $20 billion of corporate bonds to repay debt in particular triggered the selloff.

Still, some experts expect the stock to rebound from current levels after the sharp short-term drop. Wedbush analyst Daniel Ives maintained his Buy rating on SpaceX. He described the company as a powerful vertically integrated business combining rocket launches, satellite internet through Starlink and computing infrastructure, and set a 12-month price target of $190.

Bae Seong-su, Korea Economic Daily reporter, baebae@hankyung.com