Samsung Asset Management to List New KODEX US Nuclear SMR ETF

As the number of data centers, which are essential in the era of artificial intelligence (AI), continues to increase, power demand is surging. Small Modular Reactors (SMRs), which generate no carbon emissions and offer high power generation efficiency, are emerging as an alternative for the stable supply of large-scale electricity.

Samsung Asset Management announced on November 24 that it will list the "KODEX US Nuclear SMR" ETF on November 25. This ETF focuses its investments exclusively on 10 key companies involved in next-generation nuclear technology, specifically SMRs, within the power infrastructure value chain.

Recently, as the power consumption of data centers has soared, SMRs are gaining attention as an alternative to overcome the limitations of renewable energy. Compared to conventional large-scale nuclear power plants, SMRs offer higher safety and shorter construction periods. They also have fewer site selection constraints, making them a focal point as a "next-generation energy" solution. In recent developments, global big tech companies are signing power supply agreements with SMR companies to secure stable, 24-hour electricity. The US government has also issued executive orders to accelerate nuclear deployment, propelling the SMR industry on a growth trajectory.

KODEX US Nuclear SMR has selected three core value chains within the SMR industry to most fully benefit from the industry's growth. The ETF carefully selected leading global companies in each sector, narrowing the list down to 10. Specifically, the three core value chains are: "SMR Raw Materials," which supply high-purity uranium; "SMR Design/Manufacturing," which determines safety and economic efficiency; and "SMR Equipment," which encompasses manufacturing capabilities such as miniaturization and modularization.

Based on this, the ETF has allocated over 20% to Cameco, which owns a 49% stake in Westinghouse, a company well known in Korea through Korea Hydro & Nuclear Power. Cameco is a key company spanning uranium sourcing and refining, as well as manufacturing and design through Westinghouse. The ETF also includes about 17% allocation to Curtiss Wright, which supplies core components for nuclear propulsion systems such as nuclear submarines, and about 11% to BWX Technologies, which supplies submarine reactor components.

It also includes about 12% allocation to Centrus Energy, the only US company with a commercial production license for high-assay low-enriched uranium (HALEU), a core raw material for next-generation SMRs. Oklo, a next-generation SMR design company using high-assay low-enriched uranium as raw material, is included at about 17%, while NuScale Power, which designs SMRs using conventional low-enriched uranium (LEU), is included at about 5%.

Kim Chunheung, manager at Samsung Asset Management, explained, "The surge in power demand from AI data centers is not a temporary phenomenon but a massive megatrend, and the realistic solution to this is SMRs." He added, "Through KODEX US Nuclear SMR, which consists of leading companies in raw materials, design and manufacturing, and equipment, investors can directly benefit from the industry's growth."

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