FSS Investigates Korea Investment Management Over SpaceX ETF
Controversy is brewing over an active exchange-traded fund (ETF) managed by Korea Investment Management. This comes as it was confirmed that there is a significant discrepancy between the ‘ETF basket details (PDF, portfolio deposit file)’ disclosed daily to investors and the actual internal data of
The Financial Supervisory Service (FSS) is investigating Korea Investment Management over allegations that the ETF they manage, the ‘ACE US Space Tech Active’ ETF, exceeded the maximum allowed weight for SpaceX stock. According to the source, the ETF's portfolio disclosed to investors showed SpaceX's weight at 38.05% on Oct. 16, significantly above the 25% limit promised in the product prospectus.
Korea Investment Management claims this discrepancy is due to SpaceX's stock price trend, stating that as other stock prices fell, SpaceX's weight relatively increased. The company also asserts that the disclosed weight is calculated only using stocks, while the internal asset book includes additional assets like cash and accrued fees, resulting in a slightly higher SpaceX weight.
This difference of over 10% between the disclosed and internal data is seen as a serious issue in the ETF market. Experts further suggest that the ETF's real assets should be clearly reflected in the disclosed PDF, and the weight should be restored within a three-month grace period if the limit is unavoidably exceeded. The Financial Supervisory Service and Korea Exchange are looking into whether the ETF violated the Financial Investment Services and Capital Markets Act.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
