South Korean retail investors net sold 493.3 billion won from domestic space industry ETFs between May 12 and June 10, following SpaceX's stock market debut on May 12 (local time). The outflows occurred after South Korean asset managers failed to secure SpaceX IPO shares for retail clients and the stock corrected from early gains. SpaceX listed at an IPO price of 135 dollars and opened trading at 150 dollars on the Nasdaq.
TIGER US Space Tech Records Largest Retail Outflow at 304.6 Billion Won
According to the Korea Exchange on May 12, individual investors net sold a total of 493.3 billion won from seven domestic space industry ETFs between May 12 and June 10. No single product recorded net buying by retail investors during this period.
The combined assets under management (AUM) of the seven products decreased from 4.6463 trillion won on May 12 to 2.8599 trillion won on June 9, a reduction of 1.7864 trillion won (38.45%). The average return of the seven products was -14.0%.
TIGER US Space Tech saw the largest retail outflow at 304.6 billion won, accounting for over 60% of total net selling. This product allocates 25.16% of its portfolio to SpaceX.
1Q US Aerospace Tech recorded net outflows of 54.8 billion won. KODEX US Aerospace and ACE US Space Tech Active reported retail net selling of 51.7 billion won and 48.2 billion won respectively. These products hold SpaceX allocations of 14.58%, 23.27%, and 29.91%.
Industry analysts attribute the concentrated selling in TIGER US Space Tech to expectations and subsequent disappointment over SpaceX IPO share allocation. Mirae Asset Asset Management planned to secure SpaceX IPO shares through Mirae Asset Securities, but no shares were allocated to domestic retail investors, resulting in failure to include pre-listing shares at the IPO price.
ETFs with Lower SpaceX Allocation Report Smaller Losses
TIGER US Space Tech recorded the steepest decline among the seven products, falling 28.8% between May 12 and June 10. During the same period, SOL US Aerospace TOP10 dropped 20.0%, ACE US Space Tech Active fell 19.8%, and KODEX US Aerospace declined 18.0%.
Products with lower SpaceX allocation experienced relatively smaller losses. 1Q US Aerospace Tech, with a 14.58% SpaceX weighting, returned -11.53%. TIME Global Space Tech & Defense Active, holding 2.75% in SpaceX, declined only 1.49%.
WON US Aerospace Defense, which has not yet included SpaceX, rose 1.21% during the same period, recording the only positive return among the seven products. Woori Asset Management will review SpaceX inclusion during its September rebalancing.
SpaceX Stock Falls to 145.30 Dollars After Early Rally
SpaceX opened trading at 150 dollars following its 135-dollar IPO price. During the first three trading days after listing, the stock reached an intraday high of 225.64 dollars, rising 67.1% above the IPO price.
The stock subsequently reversed course as profit-taking emerged. The closing price on June 10 (local time) was 145.30 dollars, falling below the initial trading price.
Industry observers note that capital reallocation within the space sector following SpaceX's listing contributed to declines in existing listed space companies. As funds tracking the space sector rebalanced to include SpaceX, shares of previously listed space firms experienced significant corrections.
FAQ
How much did South Korean retail investors withdraw from space ETFs after SpaceX's IPO?
South Korean retail investors net sold 493.3 billion won from seven domestic space industry ETFs between May 12 and June 10, following SpaceX's stock market debut on May 12 (local time).
What was SpaceX's stock performance in the first month after listing?
SpaceX listed at an IPO price of 135 dollars and opened trading at 150 dollars. The stock reached an intraday high of 225.64 dollars during the first three trading days, then fell to a closing price of 145.30 dollars on June 10 (local time).
Which South Korean space ETF experienced the largest retail outflow?
TIGER US Space Tech recorded the largest retail outflow at 304.6 billion won, accounting for over 60% of total net selling from the seven space ETFs. This product allocates 25.16% of its portfolio to SpaceX.
