KB Asset Management's 'RISE Global Nuclear ETF' Surpasses 100 Billion KRW in Net Assets

KB Asset Management announced on the 30th that the net assets of the ‘RISE Global Nuclear ETF’ have surpassed 100 billion KRW.

This is attributed to increased investor interest in the nuclear theme, following recent news of the restart of the United States' Three Mile Island Nuclear Power Plant (TMI) and the surge in electricity demand driven by the development of artificial intelligence (AI) and data centers.

Currently, there are a total of three nuclear-themed exchange-traded funds (ETFs) listed on the domestic stock market. Among them, the ‘RISE Global Nuclear ETF,’ launched in 2022, is the only domestic ETF that invests in the global nuclear value chain. By utilizing the ‘RISE Global Nuclear ETF,’ investors can invest not only in domestic but also overseas nuclear value chains.

This ETF tracks the ‘iSelect Global Nuclear Index’ and invests evenly in domestic companies (30%) and global companies (70%). Its performance is also excellent. As of the 27th of this month, the one-year return rate reached 40.14%.

As of September 2024, the sector allocation of the ‘RISE Global Nuclear ETF’ shows nuclear power plants at 66.4%, raw materials (uranium) at 28.7%, and nuclear-related services at 3.1%. By country, the allocation is the United States (64.4%), Korea (26.18%), and Canada (7.53%) in that order.

The largest holdings by investment weight are Constellation Energy (31.67%), the largest nuclear power company in the United States, and Cameco (19.48%), a uranium producer. Constellation Energy owns the Three Mile Island nuclear plant and has risen approximately 132% over the past year.

Among domestic companies, Doosan Enerbility (8.98%) and HD Hyundai Electric (7.44%) hold significant proportions.

Nuclear power, considered the most realistic alternative among eco-friendly energy sources, is preparing for a second renaissance with the commercialization of small modular reactors (SMRs), which can complement the safety issues of existing large nuclear power plants.

Kim Chanyoung, Head of the ETF Business Division at KB Asset Management, said, "With the advent of the AI era, the role of nuclear power as an eco-friendly energy source is being re-evaluated," adding, "From a long-term perspective, investment opportunities should be sought not only in domestic but also global nuclear-related companies."