A Deep Dive into Nuclear Power ETFs
Nuclear ETFs Up 49.8% Year-to-Date
The Rise of Next-Generation Small Modular Reactors (SMRs)
As demand for artificial intelligence (AI) accelerates, power shortages at data centers have emerged as a growing market concern. Against the broader backdrop of carbon neutrality, nuclear energy is once again being viewed as a viable alternative. The bold moves of Silicon Valley heavyweights—such as Microsoft co-founder Bill Gates and OpenAI CEO Sam Altman—who have invested in next-generation nuclear technologies through companies like TerraPower and Oklo, underscore this renewed interest in small modular reactors (SMRs).
Three nuclear-themed ETFs are currently listed in Korea: KBSTAR Global Nuclear iSelect, ACE Nuclear Theme Deep Search, and HANARO Nuclear iSelect. ACE and HANARO are domestic equity ETFs, with their top five holdings heavily weighted toward power equipment manufacturers such as HD Hyundai Electric and LS Electric. Power equipment stocks—benefiting from strong export growth tied to U.S. power infrastructure investment—account for roughly 20% of these portfolios. As a result, these ETFs effectively combine exposure to both nuclear power and broader power infrastructure themes.
Looking more closely at their constituents, both ETFs invest in companies often referred to as “Team Korea” in nuclear exports, including Doosan Enerbility, Korea Electric Power Corporation (KEPCO), KEPCO KPS, KEPCO Engineering & Construction, Woojin, and major construction firms. While the two portfolios overlap by about 43%, HANARO Nuclear iSelect is more concentrated, holding 20 stocks compared with ACE Nuclear Theme Deep Search, which holds 25.
The KBSTAR Global Nuclear iSelect ETF offers broader exposure to global nuclear stocks, including Korean companies. Its top holdings include Constellation Energy (26.14%), a power generation and retail company with significant nuclear exposure; Cameco (20.76%), a leading uranium mining and production company; and Doosan Enerbility (11.58%). Another notable feature is its inclusion of NuScale Power (1.7%), a key player in the SMR space.
In the U.S. market, nuclear ETFs tend to carry higher exposure to uranium mining companies. A prime example is the Sprott Junior Uranium Miners ETF (URNJ), whose portfolio is composed entirely of uranium mining stocks. Other uranium-focused ETFs include Global X Uranium ETF (URA), with 69.5% in uranium miners; Sprott Uranium Miners ETF (URNM) at 84.5%; and VanEck Uranium and Nuclear ETF (NLR), where uranium miners account for 43.9%.
The Range Nuclear Renaissance Index ETF (NUKZ), listed in January, reflects more recent industry trends. Its holdings include NuScale Power (3.1%), which collaborates with Doosan Enerbility; Fluor (2.4%), NuScale’s largest shareholder and a major U.S. construction firm; and Oklo (2.4%), backed by Sam Altman and listed via a SPAC in May. The ETF also includes GE Vernova (0.6%) and GE Aerospace (2.6%), both of which drew attention following GE’s corporate spin-off and relisting earlier this year. Sector-wise, the portfolio is well diversified across nuclear-related infrastructure, with uranium mining at around 15%, utilities at 30.7%, and manufacturing at 20.3%.
Earlier this year, superconductors captured market attention as a hot investment theme, with companies such as Shinsung Delta Tech surging more than 400% in just three months. The commercialization of superconductors is seen as a potential catalyst for both nuclear fusion power and quantum computing. Ultimately, the energy underpinning advanced industries—from electric vehicles to AI—is electricity. Under the constraint of carbon neutrality, however, nuclear power remains the most realistic large-scale energy source. Solar and wind power, by contrast, suffer from intermittency due to their dependence on natural conditions.
As the formal name of the NUKZ ETF—Range Nuclear Renaissance Index ETF—suggests, the notion of a “nuclear renaissance,” once a dominant growth theme prior to the 2008 financial crisis, may once again be gaining momentum. Whether this resurgence evolves into a sustained upward trend will be worth watching closely.