Korean aerospace ETFs posted double-digit gains from the 29th of last month to the 3rd, led by SOL US Aerospace TOP10's 18.71% rise, according to Korea Exchange data. SpaceX's 5.72% advance and its announced Starlink Mobile satellite-to-smartphone service expansion drove the rally, with SpaceX accounting for 22–29% of top-performing aerospace ETF portfolios. Meanwhile, semiconductor and AI-focused ETFs declined 8–11%, pressured by Meta's entry into cloud services using surplus AI data center capacity, which intensified concerns over excessive AI infrastructure investment among Korean ETF investors.
SpaceX Gains Drive Korean Aerospace ETF Rally
SOL US Aerospace TOP10 recorded an 18.71% gain from the 29th of last month to the 3rd, the highest return among domestic ETFs excluding leveraged, inverse, and low-volume products, Korea Exchange reported. KODEX US Aerospace rose 17.62%, TIGER US Space Tech advanced 15.96%, and ACE US Space Tech Active gained 14.98%. SpaceX climbed 5.72% over the same period and represented 24.42% of SOL US Aerospace TOP10, 22.18% of KODEX US Aerospace, 23.53% of TIGER US Space Tech, and 28.92% of ACE US Space Tech Active.
SpaceX's planned entry into mobile telecommunications via Starlink Mobile acted as a catalyst, foreign media reported. The company is developing a system to connect smartphones directly to its satellite internet network, with plans to deploy a 40,000-satellite constellation to provide low-cost global communication services.
Semiconductor Stocks ETFs Decline on Meta Cloud Entry
TIGER US AI Data Center TOP4Plus fell 11.77% from the 29th of last month to the 3rd, marking the steepest decline among Korean ETFs. TIGER Semiconductor TOP10 dropped 11.49%, PLUS Global HBM Semiconductor declined 11.02%, KODEX US AI Optical Network fell 10.20%, HANARO US AI Memory Semiconductor TOP4+ decreased 9.95%, ACE AI Semiconductor TOP3+ slid 9.52%, TIGER Global AI Active lost 9.52%, KoAct Global AI Memory Semiconductor Active retreated 9.01%, KODEX Semiconductor declined 8.43%, and RISE AI Semiconductor TOP10 fell 8.38%.
Meta's reported cloud business launch using unused computing resources from AI data centers amplified investor doubts about semiconductor supply shortages. The company plans to sell surplus computational capacity externally, a move that heightened concerns over AI overinvestment in the market.
Kiwoom Analyst Attributes Semiconductor Correction to Technical Retracement
Han Ji-young, a Kiwoom Securities researcher, stated that semiconductor demand slowdown or shortfall has not materialized to justify claims of AI investment excess. "The correction centered on semiconductor stocks appears to be a technical pullback following the historic rally in the second quarter of this year," Han said. Securities firms maintain that semiconductor supply shortages will persist as AI industry expansion continues, viewing the recent decline as a cooling-off period after rapid gains.
FAQ
What caused Korean aerospace ETFs to rise from the 29th of last month to the 3rd?
SOL US Aerospace TOP10 gained 18.71%, KODEX US Aerospace rose 17.62%, TIGER US Space Tech advanced 15.96%, and ACE US Space Tech Active climbed 14.98%, driven by SpaceX's 5.72% increase and its announced Starlink Mobile satellite-to-smartphone service expansion. SpaceX represented 22–29% of these ETFs' portfolios.
Why did semiconductor and AI ETFs decline during the same period?
TIGER US AI Data Center TOP4Plus fell 11.77% and nine other semiconductor-focused ETFs dropped 8–11% after Meta announced plans to enter cloud services using surplus AI data center computing capacity. The news intensified investor concerns over excessive AI infrastructure investment and potential semiconductor oversupply.
