SpaceX IPO Allocation at Zero: How Much Did Domestic ETFs Include?

Korea Investment Management Allocates 26%, Samsung 25% to SpaceX
Investor Outrage Over IPO Share Allocation Failure
Experts Warn: "Beware of Volatility and Concentration Risks"

As domestic asset management companies were not allocated SpaceX IPO shares, they have included SpaceX in their portfolios by trading Exchange Traded Funds (ETFs) during market hours. On June 15, they restructured their portfolios, focusing on active ETFs that allow relatively free inclusion and exclusion of stocks, and began their first trades accordingly.

According to ETFCheck on this day, five active ETFs managed by Korea Investment Management, Timefolio Asset Management, and Mirae Asset Global Investments included SpaceX in their portfolios. The product with the highest allocation was Korea Investment Management's "ACE US Space Tech Active," with SpaceX accounting for 26.26% of the portfolio. Previously, EchoStar, which holds existing shares in SpaceX, had the highest allocation, but with the listing of SpaceX's common shares, EchoStar was entirely removed (27.40%) from the portfolio.

Although Samsung Asset Management's "KODEX US Aerospace" is unusually a passive ETF, it included SpaceX on the first day at a weight of 25.08%. A representative of Samsung Asset Management explained, "According to our index methodology, if a newly listed stock is highly representative of the industry and is certain to meet quantitative requirements, there is a provision that allows special inclusion even before the regular rebalancing date."

Timefolio Asset Management included SpaceX with weights of 3.51% in "TIME Global Space Tech & Defense Active," 1.01% in "TIME US Nasdaq 100 Active," and 0.68% in "TIME Global AI Artificial Intelligence Active." Mirae Asset Global Investments reflected SpaceX at 2.90% in the "TIGER Global AI Active" ETF. Additionally, it has been reported that other passive ETFs related to space are expected to include SpaceX one or two trading days after the listing, in accordance with their index methodologies.

Previously, Mirae Asset Securities, which had conducted a subscription for SpaceX IPO shares, ultimately received no allocation, causing the asset management companies' plans to include IPO shares in ETFs to fall through. As a result, investor backlash ensued. On the first day of its listing, SpaceX started trading at $150, higher than its IPO price of $135, and closed at $160.95. While the IPO return was 19.2%, if purchased at market price, the return would have been just 7.3%.

Although investor interest in ETFs related to SpaceX is growing, experts warn that investors should be cautious about potential volatility due to concentration and the fading of initial expectations. An official from one asset management company said, "Investor expectations for investing in SpaceX have driven up the market and ETF prices, but if these expectations dissipate after the listing, there could be greater-than-expected volatility. You also cannot assume that the stock prices of all companies engaged in the space industry will improve, and in fact, companies competing in sectors such as launch vehicles, satellites, and communications may be relatively neglected if attention concentrates on SpaceX, meaning overall ETF returns might not improve."

Meanwhile, as of around 9:40 a.m. on this day, US space tech-related ETFs are down by around 10%. This reflects the more than 10% drop in space-related stocks such as Rocket Lab (excluding SpaceX) in the US market on June 12. Another asset management company official said, "In the case of passive ETFs, trades are usually conducted at the end of the session, so even if you buy SpaceX, you have to sell or buy other stocks at the closing price. For this reason, the 10% drop directly impacts the ETF."

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