Korea Investment Management Lists New ACE US SMR Nuclear TOP10 ETF

Korea Investment Management announced on February 3 that it will list the ACE US SMR Nuclear TOP10 Exchange-Traded Fund (ETF), which invests in stocks related to small modular reactors (SMRs).

The underlying index for the ACE US SMR Nuclear TOP10 ETF, which will be listed on the Korea Exchange on this day, is the 'Solactive US SMR Nuclear TOP10 Index (Price Return)' converted to Korean won. This index includes 10 stocks selected based on their market capitalization and daily trading volume, as well as their relevance to the SMR keyword.

As of the listing date, approximately 80% of the ACE US SMR Nuclear TOP10 ETF portfolio consists of SMR design and SMR fuel companies. Among domestic ETFs, this product has the highest proportion of SMR design and fuel companies. This reflects the fact that SMR design, as the first gateway to SMR commercialization, is highly sensitive in the early stages, and SMR fuel is essential during the operational phase after commercialization.

The portfolio is constructed based on the SMR keyword scoring rankings. The top four stocks are fixed at around 70% of the portfolio, while the remaining six stocks (30%) are weighted according to market capitalization. The main constituents include NuScale Power, Oklo, Cameco, and Centrus Energy. NuScale Power and Oklo, both SMR design companies, are each included at about 20%, while Cameco and Centrus Energy, both SMR fuel companies, are each included at about 15%.

Other than the top four stocks, the portfolio also includes GE Vernova (SMR power plant operation), Constellation Energy (SMR design), Vistra (SMR power plant operation), BWX Technologies (SMR fuel), Energy Fuels (uranium mining), and Uranium Energy (uranium mine development).

Nam Yongsoo, Head of ETF Management at Korea Investment Management, stated, "In the era of artificial intelligence (AI), energy and technology have become strategic resources, and SMRs are an indispensable theme in this context." He added, "With the rapid pace of SMR development in Western countries, including the United States, as well as China, we expect continued policy funding and facility investment in the SMR industry." He continued, "The ACE US SMR Nuclear TOP10 ETF has been constructed to cover all core areas from the early stages of SMR commercialization to the operational phase. Since it aims for both growth and stability, it is preferable to invest from a mid- to long-term perspective rather than a short-term approach."

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