Korea Investment Management ACE Nuclear Theme DeepSearch ETF Sees 30 Consecutive Days of Retail Net Buying

Korea Investment Management announced on July 1 that retail investors have been net buyers of the 'ACE Nuclear Theme DeepSearch Exchange-Traded Fund (ETF)' for 30 consecutive trading days.

The ACE Nuclear Theme DeepSearch ETF is a domestic equity product launched by Korea Investment Management in June 2022. It primarily invests in companies related to the domestic nuclear power theme. Its underlying index is the 'DeepSearch Nuclear Theme Index.'

According to the Korea Exchange, retail investors have been net buyers of the ACE Nuclear Theme DeepSearch ETF from May 16 through the previous day. The cumulative net purchases by retail investors totaled approximately KRW 15.7 billion.

The net buying trend among retail investors is attributed to expectations for the industry. As the artificial intelligence (AI) industry develops, global electricity demand is surging. The nuclear power industry, which can support this, is expected to grow. The domestic companies included in the ACE Nuclear Theme DeepSearch ETF possess global competitiveness, including advanced technology and construction experience.

The ACE Nuclear Theme DeepSearch ETF currently holds around 25 stocks. Among its top holdings by weight are Korea Electric Power Corporation (12.14%), Doosan Enerbility (11.01%), and HD Hyundai Electric (10.26%). Other holdings include Hyundai Engineering & Construction (8.16%), LS ELECTRIC (7.60%), Hyosung Heavy Industries (5.69%), and Korea Power Engineering Company (5.34%).

Recent returns have also increased the ETF's investment appeal. From the beginning of this year through the previous day, the ACE Nuclear Theme DeepSearch ETF recorded a return of 100.76%. Over the past month, during which retail net buying was concentrated, the return was 32.76%. The returns for the past one year and three years were 100.46% and 42.57%, respectively. Thanks to its strong performance, net assets have increased nearly fivefold so far this year.

Nam Yongsoo, Head of ETF Management at Korea Investment Management, explained, "The ACE Nuclear Theme DeepSearch ETF is a product that allows investors to benefit from the overall growth of the nuclear power industry while reducing individual stock risk through a strategy of diversifying across approximately 25 domestic stocks."

He added, "The domestic nuclear power industry has several growth drivers, including the growth of the AI industry and global competitiveness, making the ACE Nuclear Theme DeepSearch ETF worthy of attention."

The ACE Nuclear Theme DeepSearch ETF is a performance-dividend product, and past performance does not guarantee future results. In addition, investors should be aware that principal loss may occur depending on investment results.