NH Investment & Securities Launches 'iSelect Korea Nuclear Power Index'

NH Investment & Securities announced on the 18th that it has launched the 'iSelect Korea Nuclear Power Index' and that the exchange-traded fund (ETF) tracking this index, the 'TIGER Korea Nuclear Power ETF' (launched by Mirae Asset Global Investments), is scheduled to be listed on the 19th of this month.

'iSelect' is the brand name for indices developed by NH Investment & Securities. The iSelect Korea Nuclear Power Index is designed to track the performance of major domestic nuclear power companies that lead exports to North America. As of July 11, the index includes Doosan Enerbility, a manufacturer of main equipment for large nuclear power plants and small modular reactors (SMR), and Hyundai Engineering & Construction, a construction company with the most experience in building Korean-style nuclear power plants and capable of constructing both large nuclear plants and SMRs, each with a 25% weighting. This gives the two leading nuclear export stocks, Doosan Enerbility and Hyundai Engineering & Construction, the highest weighting among all listed indices. Including BHI, which is engaged in the SMR equipment business, the proportion of domestic SMR-related companies in the index reaches a maximum of 56%.

Notably, Doosan Enerbility has partnerships with SMR companies such as NuScale Power, X-energy, and TerraPower in the United States, while Hyundai Engineering & Construction has a partnership with Holtec, another US-based SMR company. As global demand for nuclear power, particularly in the United States, is expected to grow, exports of domestic nuclear power stocks are also anticipated to increase.

Additionally, the iSelect Korea Nuclear Power Index includes Doosan Enerbility, Korea Engineering & Power Services (KEPCO E&C), KEPCO KPS, and Daewoo Engineering & Construction, all part of the 'Team Korea' group that secured a new nuclear power project in the Czech Republic in June. The combined weighting of these four companies is approximately 52%, making the index the most heavily weighted among listed indices in terms of Czech nuclear Team Korea-related stocks.

Another distinguishing feature is that the index maximizes the weighting of Team Korea-related stocks while excluding Korea Electric Power Corporation (KEPCO). Although Korea Hydro & Nuclear Power, a subsidiary of KEPCO, is part of Team Korea, most of its revenue comes from electricity sales. This sets the index apart from other nuclear power-themed ETFs currently listed, whose underlying indices typically include KEPCO as a top holding.

An NH Investment & Securities representative stated, "We expect strong performance from domestic nuclear power companies, which have excellent construction capabilities, competitive pricing, and high reliability. We will continue to provide diverse investment options for customers interested in the nuclear power industry and other competitive domestic companies."

The TIGER Korea Nuclear Power ETF from Mirae Asset Global Investments, which tracks the iSelect Korea Nuclear Power Index, is scheduled to be listed on the 19th, allowing investors to invest in the iSelect Korea Nuclear Power Index through this ETF.

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