SpaceX Rout Hits Korea-Listed Space ETFs

South Korea-listed exchange-traded funds with exposure to SpaceX have fallen across the board since the U.S. aerospace company went public. SpaceX shares surged in the early days after the listing, then reversed sharply, dragging on ETF returns.

According to ETF Check, all South Korea-listed U.S. space and aerospace ETFs that hold SpaceX posted negative returns over the past month as of July 2.

Korea Investment Management's ACE US Space Tech Active lost 19.30% over the past month. The firm did not receive any share allocation in the initial public offering subscription. It then bought SpaceX shares in the market on the listing day, lifting the stock's weighting to 31.87%, the largest in the portfolio.

Other funds with about 20% to 30% exposure to SpaceX also posted losses. Samsung Asset Management's KODEX US Space Aerospace fell 17.82% over the past month, while Mirae Asset Global Investments' TIGER US Space Tech dropped 32.35%. Shinhan Asset Management's SOL US Space Aerospace TOP10 also declined 20.74%.

The slide in South Korea-listed U.S. space and aerospace ETFs came as volatility in SpaceX shares intensified. On July 1, the stock closed at $157.54 in New York, down 7.80% from the previous session. SpaceX priced its initial public offering at $135 a share on June 12 and began trading on the Nasdaq at $150. The stock later climbed as high as $225.64 intraday, but fell to $147.11 within days, highlighting sharp swings. A June 22 disclosure that SpaceX would sell $20 billion of corporate bonds to repay debt in particular helped spark the decline.

Still, some on Wall Street see room for a rebound after the recent drop. Wedbush analyst Daniel Ives maintained a Buy rating on the stock. He described SpaceX as a powerful vertically integrated company spanning rocket launches, satellite internet through Starlink and computing infrastructure, and set a 12-month price target of $190.

Bae Seong-su, Hankyung.com reporter, baebae@hankyung.com