Oh! Can I Invest in SpaceX Too?...Indirect Investment Possible Through ETFs [Weekend Money]

SpaceX Targets June Listing with Upcoming IPO
Investor Interest Surges Ahead of Landmark Offering
Pre-IPO, Pricing, and Post-Listing: Choosing the Right Timing

As the highly anticipated initial public offering (IPO) of SpaceX approaches, interest in investing in SpaceX is rising. Since SpaceX is a U.S.-based company and remains unlisted as of the publication date, the most notable investment method currently is through exchange-traded funds (ETFs).

KB Securities has identified three main ETF-based approaches to investing in SpaceX: ETFs that directly hold SpaceX shares, ETFs that invest broadly in the U.S. IPO market, and ETFs with a space sector theme. Researcher Park Yuwan at KB Securities explained, "ETF investment strategies for SpaceX can be categorized into XOVR, which directly holds a stake in SpaceX; FPX and IPO, which are U.S. IPO market ETFs; and space-themed ETFs listed in Korea and the U.S." He added, "Each product differs in the timing and speed at which returns related to SpaceX are reflected."

The ERShares Private Public Crossover ETF (XOVR) is an ETF that directly owns SpaceX shares through a special purpose vehicle (SPV). ERShares, the asset manager, acquires SpaceX shares via a separate SPV established for investment in unlisted stocks, making it possible to invest in SpaceX simply by purchasing this ETF. This ETF, listed since 2017, has a total expense ratio of 0.75%. The portfolio is divided into two main segments: the public equity section, which consists primarily of large-cap growth stocks such as Nvidia, Alphabet, and Meta; and the private equity section, which includes stakes in SpaceX and defense AI company Anduril. As of April 24, SpaceX accounted for roughly 24.9% of the portfolio. Park noted, "However, due to the nature of unlisted assets, the ETF's net asset value is based on the asset manager's valuation and changes in corporate value are not immediately reflected in market prices. Furthermore, even after the IPO, sales restrictions may apply to the SPV's holdings, so there can be a time lag between ETF trading and the reflection of underlying assets." He continued, "Although the ability to secure a stake in SpaceX before its IPO differentiates this ETF from others, it is appropriate to maintain only a limited allocation in the portfolio given these constraints."

First Trust U.S. Equity Opportunities ETF (FPX), with $1.3 billion in assets under management, is the largest in its category. The Renaissance IPO ETF (IPO) allocates 94% of its portfolio to growth-oriented small- and mid-cap stocks. While FPX and IPO do not directly hold SpaceX shares, they can be used as vehicles for diversified exposure to the overall IPO market in 2026. Since its inception in 2013, the IPO ETF has achieved a cumulative return of 148.5%, which lags significantly behind the S&P 500's 317.7% over the same period. However, during the IPO boom in 2020, it significantly outperformed the S&P 500. Park commented, "These products are more suitable for short-term use targeting periods of concentrated IPO activity rather than for long-term holding. FPX allows new constituents to be added approximately five trading days after listing, so SpaceX could be included within about six trading days. IPO generally adds new stocks on a quarterly basis, but for large IPOs, inclusion has occurred within about 7 to 14 days, so SpaceX could be added on a similar timeline. Therefore, for both ETFs, price reflection may occur around the time SpaceX is expected to be included, rather than immediately after the IPO."

In addition, there are space-themed ETFs listed both in the U.S. and Korea. U.S.-listed space ETFs include: ARK Space & Defense Innovation ETF (ARKX), Procure Space ETF (UFO), and Tema Space Innovators ETF (NASA). ARKX, with $900 million in assets under management, is the largest in its category and is actively managed by ARK Invest, led by Cathie Wood. Its portfolio covers not just space and defense but also foundational technologies enabling the space industry, such as autonomous vehicles, drones, and 3D printing, which results in a lower pure space sector concentration compared to UFO and NASA.

UFO, with $720 million in assets under management, is a space-focused ETF launched in 2019. It tracks the S-Network Space Index, selecting stocks based on criteria such as satellite communications, earth observation, launch services, and space infrastructure companies. This makes it the most likely to add SpaceX to its index after SpaceX's IPO.

NASA, a pure space-themed actively managed ETF, was listed on March 30 this year, with about $280 million in assets under management and an annual expense ratio of 0.87%. It selects roughly 20 to 40 stocks in fields such as satellite communications, launch infrastructure, defense, and early-stage commercial space exploration. Apart from SpaceX, all other holdings are publicly listed stocks. SpaceX is held as a single position of about 12.6% of the ETF via an SPV. After the SpaceX IPO, the ETF's SpaceX SPV stake will be subject to a minimum six-month lock-up, identical to insider shareholders.

Several U.S. space-themed ETFs are also listed in Korea. These include: 1Q U.S. Aerospace Tech (Hana Asset Management, total expense ratio 0.49%, KRW 597 billion in assets under management); KODEX U.S. Aerospace (Samsung Asset Management, total expense ratio 0.55%, KRW 398 billion); TIME Global Space Tech & Defense Active (Timefolio Asset Management, total expense ratio 0.80%, KRW 382 billion); TIGER U.S. Space Tech (Mirae Asset Global Investments, total expense ratio 0.49%, KRW 359 billion); ACE U.S. Space Tech Active (Korea Investment Management, total expense ratio 0.80%, KRW 167 billion); WON U.S. Aerospace & Defense (Woori Asset Management, total expense ratio 0.35%, KRW 83 billion); and SOL U.S. Aerospace TOP10 (Shinhan Asset Management, total expense ratio 0.45%, KRW 36 billion). Park noted, "Currently, none of the ETFs listed in Korea directly hold SpaceX shares. Although each asset manager has announced plans to add SpaceX after its IPO, the actual allocation may differ from the target due to market conditions and available shares on the listing day."

ETF investment in SpaceX can be approached in three stages: before the listing, after the IPO price is set, and after the stock is added to the ETFs. Park explained, "For XOVR, an entry strategy is valid in the early stages when the IPO timeline becomes concrete, while for space-themed ETFs, expectations for related stocks are already largely reflected, so they can be approached during price adjustment periods. FPX and IPO can be considered after the IPO price is set, as the IPO price shows how the market values the company and serves as a benchmark for subsequent price movements. After that, it is possible to decide whether to increase exposure around the expected time SpaceX will be added to these ETFs."

This content was produced with the assistance of AI translation services.