Woori Asset Management's 'WON US Aerospace & Defense' ETF recorded a 1-year return of 57.65% as of the 3rd, according to KOSCOM ETF Check data. The fund, launched in August 2022, attracted renewed investor attention following SpaceX's initial public offering (IPO). The aerospace and defense sector has seen structural growth driven by record US defense budgets and expanded space infrastructure investment cycles.
Fund Structure Spans 17 Aerospace and Defense Subsectors
The ETF was first listed in South Korea in August 2022, before the sector gained widespread attention. Top holdings as of the 3rd include Axon Enterprises (3.38%), VSE Corporation (3.36%), Carpenter Technology (3.12%), Standard Aero (3.08%), Woodward (3.06%), and Kaman Holdings (3.05%). The fund covers 17 subsectors including launch vehicles, satellite services, advanced materials, nuclear propulsion, components, engines, maintenance repair and overhaul (MRO), electronic equipment, and unmanned aerial vehicles.
Choi Hong-seok, head of the ETF Solutions Division at Woori Asset Management, stated: "This ETF broadly encompasses 17 detailed fields that constitute the aerospace and defense industry. It is designed to avoid concentration in a single theme and capture the growth of the entire industry at once."
Manager Cites US Defense Budget and SpaceX IPO as Growth Drivers
Choi Hong-seok noted that US defense budgets are allocated at record levels, citing the Golden Dome project. He stated: "With SpaceX's listing as a catalyst, the space infrastructure investment cycle, including Starship launches, is showing signs of reignition. The relative advantage of the aerospace and defense value chain will remain valid in the second half."
The fund's 1-month return stood at 5.32%, 3-month at 14.75%, and 6-month at 25.83% as of the 3rd, according to KOSCOM ETF Check.
Long-Term Growth Outlook and Volatility Risks
Choi Hong-seok described the aerospace and defense industry as "one of the future growth pillars that will dominate the next 10 years." He stated: "Future space infrastructure investment by companies like SpaceX is positioned in a long-term cycle that sequentially expands in the order of launch, satellite, communication, and data."
Regarding risk management, Choi advised: "Most emerging space stocks have high valuations based on expectations for the very distant future, and short-term sharp fluctuations are likely depending on events and supply-demand. Performance is not immediately reflected in returns, and due to the nature of growth industries, the decline can be large during market downturns or interest rate hikes. It is important to approach from the perspective of weight management through diversification and asset allocation."
FAQ
What was the 1-year return of Woori Asset Management's aerospace ETF as of the 3rd?
The 'WON US Aerospace & Defense' ETF recorded a 1-year return of 57.65% as of the 3rd, according to KOSCOM ETF Check data.
When did Woori Asset Management launch the aerospace and defense ETF?
Woori Asset Management first listed the 'WON US Aerospace & Defense' ETF in South Korea in August 2022, before the sector gained widespread investor attention.
What are the top holdings in the Woori aerospace ETF?
As of the 3rd, top holdings include Axon Enterprises (3.38%), VSE Corporation (3.36%), Carpenter Technology (3.12%), Standard Aero (3.08%), Woodward (3.06%), and Kaman Holdings (3.05%).
