Asset managers race to roll out space-themed ETFs ahead of SpaceX IPO - The Korea Times

The SpaceX Launch Complex at launch pad 39-A at the Kennedy Space Center in Cape Canaveral, Fla., Monday/ Reuters-Yonhap

Korean asset managers are rushing to roll out U.S. aerospace-themed exchange-traded funds (ETFs) ahead of the widely anticipated initial public offering (IPO) of Elon Musk's SpaceX in June, industry officials said Wednesday.

Shinhan Asset Management said it plans to launch SOL U.S. Space and Aerospace TOP 10 ETF later this month, which will invest exclusively in American companies closely tied to the space industry.

An ETF is a basket of securities, such as stocks or bonds, that tracks a specific index.

"Investor interest in the U.S. space and aerospace sector has grown on the back of developments such as SpaceX's listing plans and recent progress in NASA's Artemis program mission. The ETF will focus on commercial space companies, excluding defense firms," a Shinhan official said.

Mirae Asset Global Investments is also preparing to launch a U.S. space technology-themed ETF this month, focusing on listed companies in the sector, while Korea Investment Management is planning a similar product.

Unlike most ETFs that passively track an index, Korea Investment Management's fund is expected to be actively operated by fund managers, with a strategy that includes exposure to SpaceX following its planned debut.

Existing ETFs focused on the U.S. space industry are also positioning to add SpaceX.

Hana Asset Management launched the country's first U.S. space and aerospace ETF in December, drawing strong investor demand as assets under management surpassed 50 billion won ($34 million) in the first month of listing.

The fund currently holds companies such as Rocket Lab and Joby Aviation, and plans to include SpaceX.

Samsung Asset Management's KODEX U.S. Aerospace ETF, launched in March, is also expected to include SpaceX as its top holding after the IPO.

These moves come as the anticipated listing of Elon Musk's rocket and space company -- which could rank among the largest in stock market history -- has fueled strong interest among Korean retail investors.

According to foreign media reports, SpaceX has recently confidentially filed for a U.S. IPO set for June. The company is reportedly targeting a valuation of around $1.75 trillion, potentially placing itself among top-tier U.S. companies by market value.