KB Asset Management's 'RISE Global Nuclear ETF' Ranks First in Returns Among Global Equity Funds

KB Asset Management's nuclear-themed exchange-traded fund (ETF), ‘RISE Global Nuclear ETF,’ is gaining attention for its outstanding performance.

According to the fund rating agency FnGuide, as of the 25th, the year-to-date return of the ‘RISE Global Nuclear ETF’ stands at 54.49%, recording the highest return among 241 global equity funds. Its 3-month performance is also the best, at 15.49%.

Recently, news of the restart of the United States' Three Mile Island (TMI) nuclear power plant, along with the rapid increase in electricity demand due to the development of artificial intelligence (AI) and data centers, has driven related stocks upward.

There are a total of three nuclear-themed ETFs listed on the domestic stock market. Launched in 2022, the ‘RISE Global Nuclear ETF’ is the only domestic ETF investing in the global nuclear value chain.

It tracks the ‘iSelect Global Nuclear Index’ and invests evenly in domestic companies (30%) and global companies (70%). It is characterized by investing only in nuclear-related companies with a market capitalization of over $100 million and an average daily trading volume exceeding $300,000 over 60 days, ensuring liquidity.

The largest holdings include Constellation Energy (28.81%), the largest nuclear power company in the U.S.; Cameco (19.48%), the world's largest uranium producer; and BWX Technologies (9.99%), a global manufacturer of nuclear power components and equipment. It also invests in NuScale Power (2.69%), a small modular reactor (SMR) company at the center of AI companies’ data centers and energy infrastructure investments, including Apple and Amazon.

Nuclear power, considered the most realistic alternative among eco-friendly energy sources, is preparing for a second renaissance through the commercialization of small modular reactors (SMRs), which can complement the safety issues of existing large nuclear power plants. Representative related stocks, Constellation Energy and NuScale Power, have risen sharply this year.

Kim Chan-young, head of the ETF Business Division at KB Asset Management, said, "Recently, AI big tech companies such as Google, Microsoft, and Amazon have been announcing purchase agreements with nuclear energy companies, including SMR firms, one after another," adding, "The efforts of companies to meet AI power demand while simultaneously addressing carbon neutrality challenges will act as a new growth momentum for nuclear power generation."