KB Asset Management Launches 'RISE US Space Satellite Communication ETF'

As the focus of the space industry is rapidly shifting from simple launch vehicle and satellite manufacturing to high value-added communication and data service sectors, a new exchange-traded fund (ETF) has been launched that invests intensively in leading U.S. companies dominating the global satellite communication market.

On August 11, KB Asset Management announced the launch of the 'RISE US Space Satellite Communication' ETF, which focuses on investments in American space and satellite communication companies.

The RISE US Space Satellite Communication ETF invests in 10 U.S. companies within four sectors: satellite manufacturing and launch, satellite communication equipment and networks, satellite communication services, and satellite data and services.

This ETF is characterized by only including companies where satellite communication-related sales account for more than 50% of their total sales, thereby raising exposure to the satellite communication industry to 100%. Unlike existing U.S. space-themed ETFs listed in Korea that diversify into various industries such as defense or launch vehicles, this product is designed to concentrate investments in the satellite communication sector.

As of August 10, the major holdings include SpaceX, which leads the global low-Earth orbit satellite communication segment (23.2%), followed by Lumentum (19.6%), Ciena (16.5%), Rocket Lab (14.0%), and AST SpaceMobile (7.9%). To prevent excessive concentration in a specific stock, the maximum individual weight is capped at 25% during regular adjustments, and rebalancing is conducted four times a year.

Currently, as of 2024, the global satellite communication and data service sector stands at USD 474 billion, accounting for 86.6% of the total space market, demonstrating clear market dominance at roughly 6.5 times the size of the traditional manufacturing and launch market (USD 73 billion).

Yuk Donghwi, head of ETF Product Marketing at KB Asset Management, said, "We designed this product to view everything from satellite manufacturing to communication and data services as a single value chain and to concentrate investment in companies leading the related industries." He added, "It will provide a new option for investors looking to invest in the long-term growth of the space industry."

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