Korean Asset Managers Launch SpaceX IPO ETFs

Mirae Asset Global Investments Co. and Korea Investment Management Co. listed new US space technology exchange-traded funds (ETFs) on Tuesday. The launches aim to give South Korean investors exposure to the anticipated initial public offering of SpaceX, which is estimated at about $75 billion.

Shinhan Asset Management Co. is preparing to launch the SOL US Aerospace TOP10 ETF, while KB Asset Management Co. is developing a similar product. According to the source, the latest boom reflects expectations that a SpaceX listing could become a watershed moment for the broader space industry.

Different Approaches to the IPO

Mirae Asset’s TIGER US Space Tech is a concentrated passive ETF investing in 10 core space-related companies. The fund is structured to allow SpaceX to account for as much as 25% of the portfolio through index rebalancing immediately after the IPO.

Korea Investment Management’s ACE US Space Tech Active takes a different approach as an active ETF, giving the portfolio manager more flexibility. Before SpaceX lists, the fund plans to gain indirect exposure by holding companies such as Alphabet Inc. and Tesla Inc., both seen as linked to SpaceX through equity ownership. It excludes defense contractors.

Issuers already in the market have taken broader approaches. Samsung Asset Management Co.’s KODEX US Space & Aerospace, listed in March, spreads money across 20 stocks, including defense heavyweights. Hana Asset Management Co.’s 1Q US Space Aerospace Tech, launched in November, extends beyond space into future mobility themes.

Timefolio Asset Management has been running its TIME Global Space Tech & Defense Active fund since 2024, posting a one-year return of 58%. An asset management industry official said SpaceX’s IPO could trigger a market reappraisal but added that investors need to be selective because portfolios vary widely.

Analyst Warnings on Exposure and Volatility

Analysts warn that SpaceX could prove highly volatile after listing and that ETF investors may not get as much direct exposure as the marketing suggests. Industry officials expect much of the IPO allocation to go to institutional investors, leaving only a limited number of shares available for retail investors.

If the freely tradable portion is around 5% at the outset, as some in the market expect, ETFs may face limits in building meaningful positions. That could leave passive funds lagging investor expectations. Active funds may be able to move faster, but performance will depend heavily on managers’ judgment, analysts said.

A financial investment industry official said space ETFs offer a way into a growth industry, but returns could vary sharply. Some analysts also note that several stocks held by newly launched space-related ETFs have already rallied sharply, potentially capping upside. Rocket Lab Corp. shares, for example, have climbed more than 1,600% over the past three years.