How to easily invest with money-rich US-spec ETFs Na Su-ji’s Show Me The Jae Tech

There are huge amounts of money in the US spec these days. In the US stock market last year, 80 billion dollars in spec and 89 trillion won in Korean money were collected, the largest amount ever. I thought there was a huge amount of money, but according to the US Spec Research, even though February of this year has not passed, $35 billion has already been collected in the spec, less than half of last year. That’s incredible speed.

SPAC is the first letter of Specified Purpose Acquisition Company. In Korean, it is called a company for the purpose of acquisition. In other words, it is a long company, but it is not created for business purposes like a general company, but a company that only aims to acquire and merge companies. Today, we will look at what specifications are investing in the US SPEC ETF and what SPEC ETFs to invest in depending on the investment style.

U.S. listed spec ETF types

There are three major ETFs listed in the US. If you look at the ticker name SPAK, SPCX, SPXZIt is. I would like to explain these three products by comparing them based on various criteria.

First, let’s look at when the ETF was created. SPAKThis is the first spec ETF on the US stock market to be listed on September 30 last year. after that SPCXIs listed on December 16th, SPXZWas most recently listed on January 26th of this year. The more old ETFs have been managed, the more advantageous they can be to check whether the stocks are properly inserted and removed according to the investment concept I think. In the case of the spec ETFs, all three of them have not been listed for less than a year, so there will be no significant difference.

The second is the size of the ETF. SPCX $144.9 million, SPAK $82.55 million, SPXZIs in the order of 31.7 million dollars. The size of the ETF will mean that you can figure out what popular ETFs are. In addition, when investing, the larger the size of the ETF, the greater the volume and the higher the probability of buying and selling ETFs at the desired price.

Third is the rate of return. The three ETFs have not been listed yet, so they are not meaningful indicators. If you look at it though SPCXYou can see that the company is leading the way with 23% profits in the last month, SPAKIs 19%, SPXZIs listed on January 26th, and you can see that it made about 5% profit for about 10 trading days until the 9th. It is still too early to compare the returns, but it can be pointed out that despite the short investment period, all three products are producing high returns as if reflecting the heat of the spec market.

The fourth is the most important ETF management method. First listed SPAKIs a product that follows this index by creating a set rule, that is, an index that contains the specification. But listed behind SPCXWow SPXZIs actively managed by fund managers.

Characteristics of SPAK ETF

first SPAKLet’s look at it. SPAKInvests 60% in companies that are already publicly traded through a spec merger. In addition, 40% is invested in common stocks of specifications for which the merger has not yet been determined. There are various criteria for selecting a company and specification, such as a market capitalization of at least $250 million among stocks listed in the United States and a certain level of trading volume. Companies that fall under this category are reviewed and rebalancing is performed in which stocks are added and removed once a quarter. The number of stocks to be selected and invested in this way is diversified to 137.

As we invest 60% in companies that are already listed, most of the top investments are companies rather than the specifications themselves. The item that contains the most is online casino companies Draft Kingsis. It is a stock that made high profits among the companies listed as SPEC last year. Next Open door technologyIt is an American real estate platform company, but you can think of it as a company like a Korean coffee shop or Jikbang. Pershing Square, Virgin GalacticThe stocks listed in the same last year’s specifications are also included.

Among the specs before the merger, the most contained CCIVis. this CCIVIs the hottest spec in the US market right now. This is due to rumors of a merger with Lucid Motors, an electric vehicle company. CCIVIs a company founded by Michael Klein from Citibank. Although the stock price has skyrocketed recently, it is unclear whether it will merge with Lucid Motors. This is probably the biggest advantage and disadvantage of spec investment. Since you do not know which company to merge with, the stock price may surge after the merger, but if a merger with a bad company or even a good company is overpriced and merges, the stock price will inevitably be bad.

Features of SPCX ETF

SPCXIs characterized by being the first active-spec ETF launched in the United States. It is not that the conditions of the spec to be invested in the first place are set, but the manager is to contain the spec that looks good at random. SPCXThe place where it operates is called Turtle Tactical Management, and the company explains how they launched the SPEC ETF as an active strategy rather than passive. The spec market is the most explosively growing segment in the US stock market, and the market situation is changing rapidly. In order to respond to this, it is not an index that operates according to a set rule, but an active operation is required. First listed SPAKWas a little dissipated.

So this SPCX It is said that ETFs are really going to be actively managed, and even when the stock market is going to be bad, they plan to cash out up to 20% of their assets or take them as bonds. As such, the portfolio change will be large, and it will not be easy to predict which specs to buy and sell. The more active ETFs are, the more important it is to look at their past performance and portfolio.

SPCXThere are a total of 83 items held by Unlike the other two products we compare SPCXMainly invests in specifications that have not yet merged with companies. If you look at the top 10 stocks, the one that contains the most CCIVis. It is a spec that may merge with Lucid Motors mentioned earlier. The second thing that contains SVACUis. This is a spec that has not yet found a company to merge with. Third, it announced the merger with the fuel cell truck company Heisen. DCRBis. Fourth, although it has not yet found a company, it is highly anticipated that it will merge with fintech-related companies. CRHCis.

This product seems to be the most similar ETF to the portfolio we usually imagine when investing in the US spec. These days, you buy a lot of US specs in Korea, but in reality it is not easy to get information about the US specs in Korea. It is often difficult to find basic information about who made this spec and which companies it is trying to merge with. In addition, there are many rumors coming through the US media regarding the companies that SPAC will merge with, but in reality it is likely that US investors will move much faster than us. We always have to invest later than local investors. Because of this lack of information, it is difficult to invest in individual stocks, but since the US spec market is generally booming, it seems that good companies will be listed through the spec. SPCXI think investing in is more likely to achieve much better results. Or, for those who want to invest in individual specifications rather than ETFs, but find it difficult to find suitable candidates, it would be helpful to study each of the specification candidates contained in this ETF.

SPXZ ETF features

Last, most recently listed SPXZIs also an active ETF. But SPCXCompared to that, there are a little more different investment rules. So if you look at it, in every way SPAKWow SPCXI feel that I have a medium personality.

SPXZInvests roughly 66% in companies that have been listed for less than three years. The remaining 33% invest in specifications that have not yet been listed before and after the merger is announced. In addition, the rebalancing cycle is not fixed SPCXUnlike the other, I decided to change the event once a month. Based on the degree of freedom of operation, this product can be seen as halfway between the previous two products.

Another feature is SPXZMeans that all these companies are investing in a similar proportion. It is not that the specifications are larger than those that look good, but all items are included the same. It means minimizing the impact of specific companies or specifications on ETF returns. Instead, it is completely evenly distributed to increase stability. Since these ETFs all contain similar products, it makes virtually no sense to look at the portfolio. Most of the large companies listed on the US stock market are included, and most of the major specifications are contained in an even proportion. I think it is an appropriate ETF for those who want to invest in SPEC listed companies and SPEC but want to reduce volatility.

Spec ETF fee comparison

In this way, the degree of freedom of operation is different for each product, and the product used for operation will be different. This is reflected in the fee. Products with the lowest fees follow the index and change stocks once a quarter. SPAKis. The operating fee is 0.45% per year. The next low-paid product SPCX 0.95%, SPXZIs 1% per year. Products that follow the index tend to have lower fees, while active products tend to have slightly higher fees.

In the end, what spec ETF to choose will depend on how much risk I can take and at what level of spec I want to invest in. For example, if there is a risk of not knowing which company to merge with, but if you want to invest in the pre-merger specification, the stock price is likely to jump high when merged with a good company. SPCXYou would be right to invest in. On the other hand, there is a high risk to investing only in the shell company, SPEC. If you want to invest a little more in the spec but want to invest more stably by increasing the proportion of companies that have already listed and can be verified SPAKI SPXZ You may want to consider investing.

Reporter Na Suji [email protected]