Hanwha Asset Management PLUS Aerospace & UAM ETF Net Assets Top 300 Billion Won

Hanwha Asset Management announced on the 10th that the net asset value of the PLUS Aerospace & UAM Exchange-Traded Fund (ETF) has surpassed 300 billion won.

According to the Korea Exchange, the PLUS Aerospace & UAM ETF recorded net assets of 341.2 billion won as of the market close on the 9th.

The PLUS Aerospace & UAM ETF is posting the highest return this year among ETFs listed in Korea (excluding leveraged and inverse products). Its year-to-date return is 56.9% as of the 6th, ranking first among domestically listed ETFs.

This performance is seen as being driven by expectations that SpaceX, the world's largest aerospace company, will be recognized with a high corporate valuation through an initial public offering (IPO), which in turn is leading to a re-rating of the share prices of companies within the space value chain. Among Korean companies, funds are flowing into those that supply directly to SpaceX, as well as those expected to benefit significantly from the trickle-down effects of growth in the space industry.

In particular, the PLUS Aerospace & UAM ETF is differentiated by its balanced inclusion of small and mid-cap stocks with strong growth potential, such as Satrec Initiative, the only Korean exporter of satellite systems; Intellian Technologies, which manufactures gateways and user terminals (antennas) essential for satellite communication services; and HVM, which supplies high value-added special alloys to SpaceX.

In addition, it includes large-cap stocks such as Hanwha Systems, which has strengths in small synthetic aperture radar (SAR) satellite technology and low Earth orbit satellite communication network construction, and Korea Aerospace Industries, which is leading the development of next-generation launch vehicles and the mass production of satellites, thereby securing stability as well.

Expectations for cooperation in space projects between Korea and the United States are also growing. The U.S. presidential executive order titled "Ensuring American Space Superiority," announced in December last year, includes provisions to strengthen the roles of allies and partners within 180 days. As the U.S. Department of State has stated that it looks forward to investment and cooperation from the Korean private sector in the crewed lunar exploration program Artemis and the construction of a commercial International Space Station (ISS), concrete measures to strengthen Korea-U.S. cooperation in space projects are expected to be drawn up within the first half of this year.

Geum Jeongseop, Head of the ETF Business Division at Hanwha Asset Management, said, "The decline in launch costs is accelerating the structural growth of the space industry, and this will have a significant ripple effect across both the private and public sectors," adding, "As the areas where satellite internet services are available expand and the economic feasibility of space data centers increases, the marketability of the space economy is gradually beginning to show up in numbers."