SpaceX Frenzy Cools: Retail Investors Pull $360 Million from Space ETFs

Individual investors have divested heavily from South Korean space-themed exchange-traded funds (ETFs), offloading roughly 500 billion won (approximately $360 million) since the initial public offering of SpaceX. The exodus from seven space industry ETFs indicates a significant cooling of investor enthusiasm. This trend is largely attributed to two key factors: the inability of fund managers to secure SpaceX shares at the IPO price due to a lack of domestic allocation, and a subsequent sharp decline in the stock's performance post-listing. From June 12 to July 10, domestic retail investors net sold a total of 493.3 billion won across seven space-related ETFs. Notably, not a single one of these ETFs saw net purchases from individual investors during the same period. The 'TIGER US Space Tech' ETF experienced the largest outflow, with 304.6 billion won withdrawn, accounting for over 60% of the total net sales. This ETF held a 25.16% stake in SpaceX. The failure to include SpaceX shares at its IPO price, a plan that Mirae Asset Management pursued through Mirae Asset Securities, significantly impacted investor sentiment. Other ETFs that saw substantial net sales from individuals include '1Q US Aerospace Tech' (54.8 billion won), 'KODEX US Aerospace' (51.7 billion won), and 'ACE US Space Tech Active' (48.2 billion won). The poor performance of these ETFs has further fueled the sell-off. The average return across the seven ETFs stands at a negative 14.1%. Their total net assets have shrunk dramatically, falling from 4.6463 trillion won on June 12 to 2.8599 trillion won as of July 9, a decrease of 38.4%. SpaceX, which debuted at $135 per share, briefly surged to a high of $225.64 in intraday trading on June 16. However, the stock has since trended downward, settling back to around its IPO price. As of July 10, SpaceX closed at $145.30 per share.