[Provided by KB Asset Management]
[Provided by KB Asset Management]

KB Asset Management said Tuesday it is launching the RISE US Space Satellite Communications ETF, which concentrates investment in American space and satellite communications companies.

The ETF invests in 10 US companies across four segments: satellite manufacturing and launch, satellite communications equipment and networks, satellite communications services, and satellite data and services. Any single holding is capped at 25% of the portfolio at each quarterly rebalancing.

A defining feature of the fund is that it includes only companies deriving more than 50% of their total sales from satellite communications, bringing sector exposure to 100%. Unlike other US space-themed ETFs listed in South Korea — which typically spread investments across defense, launch vehicles and other industries — this product is designed to concentrate exclusively on the satellite communications sector.

Key holdings include major US space and satellite communications companies such as SpaceX, Lumentum Holdings, Ciena and Rocket Lab. SpaceX provides low-earth-orbit satellite-based communications services through its Starlink network, while Lumentum and Ciena supply the fiber-optic infrastructure and key components that satellite communications systems require. Rocket Lab operates a small-satellite launch service and space systems business.

As of Monday, the portfolio weightings were SpaceX at 23.2%, Lumentum at 19.6%, Ciena at 16.5%, Rocket Lab at 14.0%, Teledyne Technologies at 9.1%, AST SpaceMobile at 7.9%, Viasat at 3.1%, Viavi Solutions at 2.7%, Planet Labs at 2.4% and Iridium Communications at 1.5%.

The satellite communications and data services market was valued at $474 billion in 2024, accounting for 86.6% of the entire space industry — roughly 6.5 times the size of the satellite manufacturing and launch market, which stood at $73 billion. Satellite communications is drawing attention as a new growth frontier, particularly as its applications expand beyond broadband and mobile communications to include geospatial, meteorological and mobility data.

"We designed the product so investors can view the entire chain — from satellite manufacturing to communications and data services — as a single value chain and concentrate their investment in the companies leading those industries," said Yuk Dong-hwi, head of ETF product marketing at KB Asset Management. "It will offer a new option for investors who want exposure to the long-term growth of the space industry."

KB Asset Management is among the more active fund houses in rolling out new products. It recently launched the RISE Kosdaq Covered Call Active ETF, which pursues monthly distributions by applying a covered-call strategy to an actively managed portfolio of Kosdaq growth stocks. Rather than simply tracking the Kosdaq 150 index, the fund seeks excess returns through a concentrated portfolio selected by its managers, using weekly call-option premiums on the Kosdaq 150 as the source of monthly distributions.


th5@heraldcorp.com