"Shares Plunge 12% on First Day of Listing"...Space ETFs Tumble After Drawing 3 Trillion Won, Because They Could Not Hold SpaceX?

[Financial News] Domestic space exchange-traded funds (ETFs) that attracted more than 3 trillion won in anticipation of a SpaceX listing fell sharply on the 15th, their first trading day after listing.
According to the Korea Exchange (KRX), Mirae Asset Management's TIGER U.S. Space Tech, which drew the most money, was trading at 12,595 won as of 2:10 p.m., down 12.84% from the previous session.
Korea Investment Management's ACE US Space Tech Active ETF was also down 11.59% to 11,612 won, while Shinhan Asset Management's Shinhan SOL US Aerospace TOP10 ETF fell 11.07%.
Samsung Asset Management's KODEX US Aerospace ETF was down 8.78%, Hana Asset Management's 1Q US Aerospace Tech ETF fell 5.40%, and Hanwha Asset Management's PLUS Aerospace (1.07%), Woori Asset Management's WON U.S. Aerospace and Defense (1.96%), and TIMEFOLIO Asset Management's TIME Global Space Technology & Defense Active ETF (1.02%) were also lower.
SpaceX surged more than 19% on its first day of trading on Nasdaq on the 12th (local time), giving the company a valuation of about 3,200 trillion won ($2.12 trillion). As expectations grew for the so-called 'IPO of the century,' hopes quickly shifted to a 'SpaceX effect.'
However, most domestic space ETFs that use passive, index-tracking strategies were unable to include SpaceX. ACE US Space Tech Active ETF, which can take a more aggressive approach, launched a marketing campaign saying it would invest at the offering price rather than the market price. But it failed to receive IPO allocations and bought shares at market prices on its first day, drawing a flood of complaints from investors.
As money rushed into SpaceX, other stocks held in large weights by major domestic space ETFs, including Rocket Lab (-10.79%), AST SpaceMobile (-15.53%), Redwire Corporation (-11.53%), and EchoStar (-10.97%), also fell one after another, dragging down returns.

According to Koscom Corporation's ETF Check, domestic space-related ETFs attracted more than 3 trillion won over the past three months. The product that drew the most money was TIGER U.S. Space Tech, with 2.584 trillion won, followed by KODEX US Aerospace ETF (588.7 billion won), ACE US Space Tech Active ETF (274.6 billion won), Shinhan SOL US Aerospace TOP10 ETF (105.6 billion won), PLUS Aerospace (26.6 billion won), and TIGER K-Defense Industry & Space ETF (7.8 billion won).
For passive ETFs, once SpaceX is added to the benchmark index under the index methodology, they would have to sell other stocks that fell on the back of the SpaceX-driven concentration and buy SpaceX instead, an official at one asset management firm told Newsis. "An initial loss is unavoidable," the official said.
Han Ji-young, a researcher at KIWOOM Securities Co., Ltd., said, "SpaceX quickly reached a market capitalization of $2.1 trillion, entering the top six by market cap in the U.S. stock market." She added, "Buying interest in SpaceX may continue this week as well."
Han also said, "I expect passive funds such as domestic and overseas space-themed ETFs and tech stock ETFs to mechanically add the stock, while active funds seeking alpha will also show an appetite for inclusion."

bng@fnnews.com Kim Hee-sun Reporter