Korea Investment Trust Management Launches Korea's First Nuclear Power Theme ETF

Expectations for Policy Benefits from 'Rebuilding as a Nuclear Power Nation'

[Asia Economy Reporter Hwang Yoon-joo] Korea Investment Trust Management announced on the 23rd that it will list the 'KINDEX Nuclear Theme DeepSearch ETF,' which invests in domestic nuclear-related companies, on the Korea Exchange on the 28th. This is the first time a nuclear-themed ETF has been launched in Korea. The 'KINDEX Global Brand TOP10 Bloomberg ETF,' which invests in top global brand companies, will also be listed simultaneously on the same day.

The 'KINDEX Nuclear Theme DeepSearch ETF,' Korea's first nuclear-themed ETF, invests in stocks related to the nuclear power generation industry (construction, equipment, accessories, operation management, etc.) among the listed stocks on the Korea Exchange and KOSDAQ market. It tracks the 'DeepSearch Nuclear Theme Index' calculated by DeepSearch, an AI and big data-based data platform company.

The index extracts related stocks centered on key keywords related to nuclear power generation and determines the weighting of each stock using data such as corporate disclosures, patents, IR materials, and reports. Major constituent stocks include Korea Electric Power Corporation (KEPCO), Samsung C&T, POSCO Holdings, Doosan Enerbility, KEPCO Engineering & Construction, Hyundai Heavy Industries, and KEPCO KPS.

Nuclear power generation has recently attracted market attention alongside interest in Net Zero (carbon neutrality) and energy self-sufficiency. In particular, the small modular reactor (SMR), which complements the shortcomings of existing nuclear power plants in terms of safety and economic efficiency, is expected to create various investment opportunities as it reshapes the energy industry.

The 'KINDEX Global Brand TOP10 Bloomberg ETF' is a product that selects and invests in the number one companies in the top 10 global sectors. The top 10 sectors and representative companies are Apparel & Textiles (Louis Vuitton Mo?t Hennessy (LVMH)), Food & Beverage (Coca-Cola), Household Products (Procter & Gamble (P&G)), Banking (JPMorgan Chase), Entertainment (Activision Blizzard), Hardware Tech (Apple), Semiconductors (NVIDIA), Software (Microsoft), Biopharmaceuticals (Pfizer), and Automobiles (Tesla). Representative stocks are selected by comprehensively evaluating market capitalization and profit margin in each sector, and approximately 10% is equally weighted and diversified.

This ETF is based on the 'Bloomberg Global Select Industry Leaders TOP10 Index' calculated by Bloomberg. Quarterly reviews are conducted four times a year to review changes in stock weightings and industry classifications, and regular reviews are conducted twice a year to replace stocks and screen the universe.

Jae-gyu Bae, CEO of Korea Investment Trust Management, said, “The essential purpose of ETFs is to manage risk easily and quickly through diversification. The KINDEX Global Brand TOP10 Bloomberg ETF, which invests in global top-tier stocks collectively, will be an efficient alternative to reduce the risks associated with direct investment in individual stocks at a time when market volatility has increased.”

This content was produced with the assistance of AI translation services.