Korea Investment Management said on the 3rd it will list an exchange-traded fund (ETF) that invests in stocks related to small modular reactors (SMRs), the ACE U.S. SMR Nuclear TOP10.
The underlying index of the ETF listing that day is the won-converted Solactive US SMR Nuclear TOP10 Index (Price Return). The index includes 10 stocks selected from those that pass market capitalization and daily trading value criteria, considering their association with the SMR keyword.
As of the listing date, about 80% of the ACE U.S. SMR Nuclear TOP10 ETF portfolio will consist of SMR design corporations and SMR fuel corporations. Korea Investment & Securities Co. said it is the product with the highest allocation to SMR design and fuel corporations among ETFs listed in Korea.
The portfolio is constructed based on SMR keyword scoring ranks. The top four stocks are fixed at about 70%, and the remaining six stocks (30%) follow a market-cap-weighted method.
Key holdings include ▲ Nuscale Power ▲ Oklo ▲ Cameco ▲ Centrus Energy A. Nuscale Power and Oklo, SMR design corporations, are each included at about 20%, and Cameco and Centrus Energy, SMR fuel corporations, are each held at about 15%.
Nam Yong-su, head of ETF management at Korea Investment Management, said, "In the AI era, energy and technology have become strategic resources, and in this process SMRs are an indispensable theme," adding, "Thanks to the speed race in SMR development among Western countries including the United States and China, policy funds will flow into the SMR industry and capital expenditures will follow."
He added, "The ACE U.S. SMR Nuclear TOP10 ETF built its portfolio to reflect everything from the early stage of SMR commercialization to core areas after operations," and "Because it seeks both growth and stability, it is better approached from a mid- to long-term perspective rather than in the short term."