Fund grows to 2.4653 trillion won (about $1.61 billion) in under two months since listing

Retail investors channel 86% of net purchases in US space ETFs into the product

One-month return hits 49.6%, with SpaceX IPO expectations adding to momentum

[Provided by Mirae Asset Global Investments]
[Provided by Mirae Asset Global Investments]

Mirae Asset Global Investments' TIGER US Space Tech exchange-traded fund surpassed 2 trillion won in net assets in less than two months since its listing. Analysts attribute the rapid growth to a concentration of retail investor inflows among domestic US space-themed ETFs and a concurrent rally in space-related stocks.

Mirae Asset Global Investments said Friday the fund's net assets had crossed the 2 trillion won mark. According to Korea Exchange, net assets stood at 2.4653 trillion won as of that day. The fund launched April 14 with 30 billion won in assets, crossed 1 trillion won on May 19 and surpassed 2 trillion won on May 28.

Retail investor money has flowed heavily into the fund. Since the TIGER US Space Tech ETF's listing, total net purchases by retail investors across all domestic US space-themed ETFs reached 2.1167 trillion won. Of that, 1.8151 trillion won — about 86 percent — went into the TIGER US Space Tech ETF.

Strong returns have also underpinned the asset growth. The fund posted a one-month return of 49.6 percent as of Thursday, which Mirae Asset said was high even compared with major overseas space-themed ETFs. Rising share prices and retail inflows together have sustained the upward momentum in net assets.

Unlike conventional aerospace ETFs, the TIGER US Space Tech ETF focuses on pure-play space companies rather than aviation and defense firms. Key holdings include Rocket Lab, Intuitive Machines, Redwire and AST SpaceMobile — companies spanning launch vehicles, satellite manufacturing, lunar exploration and low-Earth-orbit satellite communications infrastructure.

As of Thursday, the top four holdings accounted for a combined 73.9 percent of the portfolio. The concentrated exposure to core space infrastructure companies means the fund can respond quickly when growth expectations for the space industry materialize. However, that same concentration means share price swings in individual holdings can have an outsized effect on overall performance.

Anticipation of a SpaceX listing is also fueling broader sentiment toward space-themed investments. The TIGER US Space Tech ETF has a rule allowing SpaceX to be included at up to a 25 percent weighting if the company goes public. Growing Starlink subscriber numbers, rising demand for low-Earth-orbit satellite communications infrastructure, and expectations for expansion in the lunar exploration and launch vehicle markets are all drawing wider attention to the new space industry.

Kim Nam-ho, head of global ETF management at Mirae Asset Global Investments, said the fund crossing 2 trillion won in net assets reflected investor recognition of a differentiated portfolio strategy built around the growth potential of the new space industry. "We are establishing ourselves as the representative space-themed ETF listed in Korea, backed by a differentiated structure centered on pure-play space companies and strong performance," he said.

A SpaceX stock market debut would also mark an inflection point for the space industry in terms of scale. The company is targeting roughly $75 billion in proceeds from its IPO at $135 per share, with a post-listing valuation of approximately $1.75 trillion. The event would be the first major instance of a leading new-space company — one that has remained private — receiving a public market valuation directly, making it more than a routine space company listing. However, given that SpaceX recorded a net loss of $4.94 billion last year, the market is expected to scrutinize both Starlink's growth trajectory and the cost burden of launch vehicle development once the company goes public.


kacew@heraldcorp.com