KB Asset Management Launches Korea's First Global Nuclear Energy ETF

[Asia Economy Reporter Hwang Yoon-joo] KB Asset Management is launching Korea's first global nuclear power ETF, the 'KBSTAR Global Nuclear iSelect ETF.'

This product invests in domestic companies related to the nuclear power value chain (30%) and global companies (70%).

The nuclear power value chain is divided into uranium-related companies, power generation companies, and service companies (such as nuclear power plant design and maintenance).

The index tracked by the KBSTAR Global Nuclear iSelect ETF is the 'iSelect Global Nuclear Index.' This index invests only in companies related to nuclear power with a market capitalization of over $100 million and an average daily trading volume of over $300,000 over 60 days, ensuring liquidity.

As of the end of August 2022, the weight by value chain is highest for uranium companies at 61.04%, followed by nuclear power generation (31.70%) and nuclear power services (7.26%). By country, the weights are the United States (48.23%), Korea (29.82%), and the United Kingdom (19.30%). Representative companies include Cameco (24.8%) in the U.S. and Kazatomprom (17.5%) in the U.K., both uranium producers, and domestic companies such as Doosan Enerbility (15.2%).

Geum Jeong-seop, Head of ETF Marketing at KB Asset Management, said, "Most domestic nuclear power companies listed in Korea are related to equipment and parts for nuclear power services, and from a global perspective, the share of domestic reactors is about 7%, which is not high. We expanded the investment scope from domestic to global to invest across the entire nuclear power value chain."

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