Intensive Investment in US Nuclear Value Chain... New Listing of SOL US Nuclear SMR

Shinhan Asset Management will list the 'SOL US Nuclear SMR' ETF, which invests across the entire value chain of the US nuclear industry?a key energy source in the age of artificial intelligence (AI)?as a new offering on May 20.

Recently, several factors have converged, including securing power sources due to the spread of AI, responding to climate change, and the need to strengthen energy security. As a result, major countries are once again turning their attention to nuclear energy.

Nuclear power is regarded as an energy source that can complement both fossil fuels and renewables, thanks to its high energy density, low carbon emissions, and low operating costs. In particular, as electricity demand from AI data centers surges, the importance of securing nuclear technology is becoming even more pronounced.

Kim Junghyun, Head of ETF Business at Shinhan Asset Management, said, "Because nuclear power is a field that requires advanced technology, countries with existing technological strength are likely to lead the market," adding, "Considering the scale of nuclear power facilities, maintenance capabilities, export competitiveness, and diplomatic capacity, the United States is expected to dominate the next-generation nuclear market."

The small modular reactor (SMR), a next-generation nuclear technology that offers both stability and flexibility demanded by the market, is expected to become even more important going forward. Compared to conventional large-scale nuclear plants, SMRs require less installation space and can be located near consumption sites, making them well-suited for supplying power to data centers.

Kim also explained, "The United States is also leading the SMR ecosystem, meeting all four key investment criteria: technological leadership, export scalability, supply chain independence, and geopolitical reliability," adding, "To prepare for the AI era, global big tech companies are accelerating their investments in nuclear energy centered on SMRs."

The 'SOL US Nuclear SMR ETF' focuses its investments on 18 stocks across the US nuclear industry value chain, spanning from uranium mining to reactor operation and leading SMR companies.