Nuclear ETFs: Growth Prospects and Investment Trends
DB Securities anticipates a robust earnings growth for domestic nuclear ETFs this year, and projects notable growth for global nuclear ETFs next year. Researcher Tae-hyun Seol forecasts that the operating profit of 'PLUS Global Nuclear Value Chain' will increase by over 50% next year, while 'SOL US Nuclear SMR' and 'RISE Global Nuclear ETF' are expected to see earnings growth exceeding 30%.
Interest in U.S.-listed nuclear ETFs is growing, particularly for UTES, which boasts significant holdings in key nuclear power companies. UTES has achieved returns over double that of S&P 500, and overseas-listed ETFs offer tax advantages by minimizing capital gains tax liabilities. JP Morgan is recommending buying shares in key nuclear stocks included in UTES, citing the increasing importance of stable energy supply amid rising demand for artificial intelligence and EV infrastructure.
The contract between Korea Hydro & Nuclear Power, Korea Electric Power Corporation, and Westinghouse has introduced volatility in nuclear ETFs but is viewed as a buying opportunity. The agreement reflects enhanced cooperation between the two nations in the nuclear sector, boosting buying interest in related stocks. Experts are highlighting opportunistic buys in Hyundai Construction and Doosan Enerbility amid optimism for strengthened nuclear collaboration.
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Gaining Investment Returns and Tax Benefits... A Double Benefit with US-Listed Nuclear Power ETFs - Maeil Business NewspaperInvestors turning to the US for ETFs: The charm of the flagship product 'UTES' includes top US nuclear power stocks like Vistra, Talon, and Constellation, which constitute over 10% of its portfolio. Returns are twice as high as the S&P500. Separate taxation offers tax savings. $100 million poured into UTES last month. Unlike domestic ETFs, taxes are lower and quarterly dividends are also paid, attracting the attention of wealth managers.
Everyone Jumped into Nuclear Power ETFs…Controversial 'Humiliation Contract' Leads to 'Nuclear-Level Volatility' - Yonhap InfomaxThe nuclear power exchange-traded fund (ETF) rebounded after it was revealed that Korea Hydro & Nuclear Power Co. and Korea Electric Power Corporation had signed a humiliating contract with Westinghouse, an American nuclear power plant company. The perception that the contract terms were not particularly disadvantageous and the expectation that Korea and the U.S. will strengthen nuclear cooperation played a role. According to Yonhap Infomax Market Monitor Korea (screen number 1844), 'TIGER Korea Nuclear Power' and 'SOL Korea Nuclear Power SMR' showed extreme volatility following their listing on the 19th. For example, SOL Korea Nuclear Power SMR fell 12.63% from the opening price (9,695 won) on the first day of listing to the low (8,000 won) on the 20th.
DB Securities "This Year Domestic Nuclear ETFs... Next Year Expect Higher Profit Growth in Global Nuclear ETFs" - ETodayOn the 22nd, DB Securities forecasted that this year, domestic nuclear ETFs are expected to see profit growth, while next year, global nuclear ETFs will see higher profit growth. - By Seol Tae-hyun
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