Largest among domestic nuclear power ETFs
Maximum weighting in Doosan Enerbility
NH-Amundi Asset Management announced on the 24th that the net asset value (NAV) of the HANARO Nuclear Power iSelect ETF has surpassed 750 billion won.
According to the Korea Exchange, as of the 20th, the ETF's NAV stood at 758.5 billion won. After breaking through 500 billion won in December last year, it has expanded by more than 250 billion won in about three months, continuing its growth trend.
HANARO Nuclear Power iSelect is the first nuclear power-themed ETF launched in Korea on June 28, 2022. It selectively invests in 15 key domestic nuclear power plant-related companies, including Doosan Enerbility, HD Hyundai Electric, Korea Electric Power Corporation (KEPCO), Hyosung Heavy Industries, LS Electric, and Hyundai Engineering & Construction.
Among domestic nuclear power-themed ETFs, it is characterized by having the highest weighting in Doosan Enerbility at 24.35%. At the end of last year, HANARO Nuclear Power iSelect revised its index methodology and raised the maximum constituent weight (cap) to 25%, restructuring its portfolio around companies within the nuclear power industry value chain that have strong representativeness and high growth potential.
In addition to Doosan Enerbility, it is also investing in a balanced manner in Hyundai Engineering & Construction, Korea Electric Power Technology, and KEPCO KPS, which, together with Korea Hydro & Nuclear Power, a subsidiary of KEPCO, form part of "Team Korea."
Recently, Team Korea has been drawing attention as a key partner in the United States' nuclear power revival project. The U.S. is in urgent need of building nuclear power plants amid severe power shortages caused by the development of AI, but it lacks the industrial ecosystem to push such projects forward.
NH-Amundi Asset Management explained that, as Korean companies' entry into the U.S. market gains momentum, this presents an opportunity for Team Korea to increase new orders and sales. Based on its experience in nuclear power generation cooperation with the U.S., the company expects additional orders to follow in other regions such as Europe and the Middle East, where expansion of nuclear power generation is being pursued.
Kim Seungcheol, Head of ETF Investments at NH-Amundi Asset Management, said, "Korean nuclear power companies are expected to see their status rise as key partners in the U.S. nuclear power revival project," adding, "HANARO Nuclear Power iSelect is the leading ETF for the domestic nuclear power theme and the optimal ETF for investing in the nuclear power plant theme."
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