Seven US space-themed ETFs listed in South Korea experienced net outflows of 647.1 billion KRW over one month as of the 10th, with all funds posting negative returns ranging from -5.18% to -40.75%. The capital flight followed a 9.72% decline in SpaceX stock since its Nasdaq listing last month 12th (local time), where shares fell from an opening price of 160.95 USD to 145.3 USD by the 10th. Asset managers attributed the poor performance to profit-taking after rapid pre-listing gains, broader growth stock volatility, and investor concerns over launch schedules and profitability timelines for portfolio companies. The outflows occurred despite intensive marketing by South Korean asset managers promoting SpaceX inclusion in their ETFs, with funds holding higher SpaceX allocations suffering steeper losses. Industry experts maintain a positive long-term outlook for the space sector, citing falling launch costs and expanding demand in satellite communications, Earth observation, and defense applications.
Seven South Korean ETFs Record 647.1 Billion KRW Net Outflows
According to Koscom ETF Check data as of the 10th, the seven US space ETFs listed in South Korea recorded 647.1 billion KRW in net outflows over the past month. TIGER US Space Tech ETF led outflows with 302.9 billion KRW, followed by KODEX US Aerospace at 127.4 billion KRW. Additional outflows included 1Q US Aerospace Tech (96.4 billion KRW), ACE US Space Tech Active (44.9 billion KRW), TIME Global Space Tech & Defense Active (38.3 billion KRW), SOL US Aerospace TOP10 (25.6 billion KRW), and WON US Aerospace Defense (11.6 billion KRW).
SpaceX Stock Declines 9.72% Since Nasdaq Listing
SpaceX listed on Nasdaq last month 12th (local time) with an opening price of 160.95 USD. The stock closed at 145.3 USD on the 10th, representing a 9.72% decline since listing. The company's post-listing performance became a significant drag on ETF returns, as SpaceX holdings constituted major portfolio allocations across multiple funds.
TIGER US Space Tech ETF Posts -40.75% One-Month Return
As of the 10th, TIGER US Space Tech recorded a one-month return of -40.75% on a dividend reinvestment basis. SOL US Aerospace TOP10 and ACE US Space Tech Active posted returns of -32.07% and -30.68% respectively. KODEX US Aerospace returned -29.38%, followed by 1Q US Aerospace Tech (-18.21%), TIME Global Space Tech & Defense Active (-6.80%), and WON US Aerospace Defense (-5.18%).
Higher SpaceX Allocations Correlate With Steeper ETF Losses
As of the 10th, ETFs with larger SpaceX allocations experienced worse performance. TIGER US Space Tech held SpaceX at 25.91% of assets, while SOL US Aerospace TOP10 maintained a 25.42% position. ACE US Space Tech Active allocated 29.94% to SpaceX, and KODEX US Aerospace held 23.41%. In contrast, TIME Global Space Tech & Defense Active, which posted a -6.80% return, held only 2.75% in SpaceX. WON US Aerospace Defense, with a -5.18% return, had not yet included SpaceX in its portfolio.
Mirae Asset and Elon Musk Comment on Space Industry Prospects
A Mirae Asset Asset Management representative stated that ETF returns suffered due to profit-taking following rapid short-term gains driven by SpaceX listing expectations, increased volatility across growth stocks, and concerns about launch schedules, satellite deployment timelines, and profitability transitions for certain portfolio companies. Elon Musk expressed confidence on the 9th (local time) via his social media, stating: "If we achieve our goals, SpaceX's value will be greater than the rest of Earth combined." Financial industry experts continue to view the space sector's growth potential positively, noting that declining launch costs and expanding demand in satellite communications, Earth observation, and defense support a favorable medium- to long-term trajectory despite short-term volatility.
FAQ
What caused the 647.1 billion KRW outflow from South Korean space ETFs?
The outflows occurred over one month as of the 10th following a 9.72% decline in SpaceX stock since its Nasdaq listing last month 12th (local time), combined with profit-taking, growth stock volatility, and investor concerns over launch schedules and profitability timelines.
How did SpaceX allocation levels affect ETF performance?
ETFs with higher SpaceX allocations experienced steeper losses. TIGER US Space Tech (25.91% SpaceX allocation) posted a -40.75% one-month return, while TIME Global Space Tech & Defense Active (2.75% allocation) returned -6.80%, and WON US Aerospace Defense (no SpaceX holding) returned -5.18%.
What is the outlook for space industry investments according to experts?
Financial industry experts maintain a positive medium- to long-term outlook for the space sector, citing falling launch costs and expanding demand in satellite communications, Earth observation, and defense applications, despite acknowledging continued short-term volatility.
