"SpaceX Surged 49%, But My Account Is Down 34%"... ETF Retail Investors Left Out in the Cold in 'Space-Scale Snub' [World of Retail Investors]

It was the day SpaceX, which he had been eagerly preparing for over the past three months, was finally set to list on the Nasdaq under the ticker SPCX. Since it was difficult to take part directly in the domestic public offering, H chose an aerospace exchange-traded fund (ETF) as an alternative.
His bet was that if SpaceX soared, the related ETF would rise with it. In fact, SpaceX opened at $150, 11% above its offering price of $135, and climbed as high as $176 during the session.
22% from the offering price. 83%, respectively, extending its rally for three straight sessions.
It was the day SpaceX, which he had been eagerly preparing for over the past three months, was finally set to list on the Nasdaq under the ticker SPCX. Since it was difficult to take part directly in the domestic public offering, H chose an aerospace exchange-traded fund (ETF) as an alternative.It was the day SpaceX, which he had been eagerly preparing for over the past three months, was finally set to list on the Nasdaq under the ticker SPCX. Since it was difficult to take part directly in the domestic public offering, H chose an aerospace exchange-traded fund (ETF) as an alternative.
Korean retail investors left scrambling amid the 'Korea passing' controversy It was a moment when the largest IPO in history delivered a record-breaking windfall, yet H's ETF account showed a cold blue loss instead of a red gain. During SpaceX's Nasdaq listing process, the so-called 'Korea tranche' allocation suddenly fell to zero.
Mirae Asset Securities participated in the underwriting syndicate for the listing and drew in as much as 760 billion won in subscription funds from domestic institutions and retail investors. However, the final allocation received from lead underwriter Goldman Sachs was confirmed to be zero shares.An unprecedented case of 'Korea passing' occurred, with all subscription funds refunded. This was due to the limits of the 'discretionary allocation' system, under which the issuer and underwriter hold full authority over share distribution.As demand for the offering surged to more than four times the IPO size, the underwriters gave priority to global sovereign wealth funds and key institutional investors with a strong tendency to hold shares for the long term. As a result, allocations for domestic institutions and retail investors were completely cut.
In the end, individual investors who had tied up tens of millions of won in subscriptions were left watching SpaceX's listing become someone else's celebration, and they walked away empty-handed. They said it was disclosed in advance, but investor anger is growing: 'Isn't this fraud?' Whether investors received IPO shares made a clear difference in returns.3%. That is why complaints are pouring in from investors who had hoped to profit from the stock's first-day surge.In particular, protests are intensifying not only among Mirae Asset Securities shareholders, but also among investors in aerospace ETFs run by Mirae Asset Global Investments and Korea Investment Management, both of which had widely promoted that they would include SpaceX in their portfolios after receiving shares from Mirae Asset Securities. H, who had bought Mirae Asset Global Investments' TIGER U.
It was the day SpaceX, which he had been eagerly preparing for over the past three months, was finally set to list on the Nasdaq under the ticker SPCX. Since it was difficult to take part directly in the domestic public offering, H chose an aerospace exchange-traded fund (ETF) as an alternative.It was the day SpaceX, which he had been eagerly preparing for over the past three months, was finally set to list on the Nasdaq under the ticker SPCX. Since it was difficult to take part directly in the domestic public offering, H chose an aerospace exchange-traded fund (ETF) as an alternative.
H is trying hard to ignore an account that is down 34% and is anxiously waiting for the 17th, when the ETF will move with SpaceX included in its holdings. Among investors, frustration is boiling over: 'They heavily promoted it as if they would include SpaceX IPO shares, so isn't this clearly false or exaggerated advertising?' In response, Mirae Asset Securities said it had informed investors in advance through the prospectus that no allocation might be available because of the nature of overseas IPOs.
It was the day SpaceX, which he had been eagerly preparing for over the past three months, was finally set to list on the Nasdaq under the ticker SPCX. Since it was difficult to take part directly in the domestic public offering, H chose an aerospace exchange-traded fund (ETF) as an alternative.It was the day SpaceX, which he had been eagerly preparing for over the past three months, was finally set to list on the Nasdaq under the ticker SPCX. Since it was difficult to take part directly in the domestic public offering, H chose an aerospace exchange-traded fund (ETF) as an alternative.
The company says it bears no legal responsibility, but the Financial Supervisory Service immediately launched an inspection into why the allocation failed and whether investor protection measures were properly carried out. How effective is the ETF workaround? Retail investors are growing more worried The situation is even more complicated for individual investors like H who tried to gain indirect exposure through ETFs.
Driven by expectations for SpaceX's listing alone, nearly 300 billion won has flowed into the domestic aerospace ETF market over the past three months. But with the IPO allocation falling through entirely, domestic asset managers that can no longer secure direct IPO shares are buying SpaceX stock on the open market and adding it to their products.
It was the day SpaceX, which he had been eagerly preparing for over the past three months, was finally set to list on the Nasdaq under the ticker SPCX. Since it was difficult to take part directly in the domestic public offering, H chose an aerospace exchange-traded fund (ETF) as an alternative.It was the day SpaceX, which he had been eagerly preparing for over the past three months, was finally set to list on the Nasdaq under the ticker SPCX. Since it was difficult to take part directly in the domestic public offering, H chose an aerospace exchange-traded fund (ETF) as an alternative.
S. Aerospace ETF added SpaceX to its portfolio through open-market purchases immediately after the listing.
08% of the fund, the highest share among ETFs listed in Korea. 6 billion won.
That was possible because the firm set up a special pre-listing inclusion process and loaded SpaceX at the maximum weight on the listing day. Some individual investors are also looking beyond domestic products and directly buying overseas ETFs listed on U.
S. markets.
It was the day SpaceX, which he had been eagerly preparing for over the past three months, was finally set to list on the Nasdaq under the ticker SPCX. Since it was difficult to take part directly in the domestic public offering, H chose an aerospace exchange-traded fund (ETF) as an alternative.It was the day SpaceX, which he had been eagerly preparing for over the past three months, was finally set to list on the Nasdaq under the ticker SPCX. Since it was difficult to take part directly in the domestic public offering, H chose an aerospace exchange-traded fund (ETF) as an alternative.
bng@fnnews.com Kim Hee-sun Reporter