First Trust Launches UCITS ETF for Nuclear Power Sector on London Stock Exchange

First Trust has listed a new UCITS ETF on the London Stock Exchange providing targeted exposure to the global nuclear power industry.

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By ETFWorld.co.uk

Rupert Haddon Managing Director at First Trust Global Portfolios

The First Trust Bloomberg Nuclear Power UCITS ETF (RCTR) began trading on January 29, 2026.

The fund is a passively managed, index-tracking ETF that seeks to replicate the performance of the Bloomberg Nuclear Power Select Index. This index is designed to measure the performance of companies involved in the nuclear power sector, from uranium mining to power plant engineering.

ETF Structure and Index Methodology

The ETF has a Total Expense Ratio (TER) of 0.70%. It is structured as a UCITS fund, complying with European regulatory standards for retail investment products.

The underlying index uses a multi-step selection process. It begins with the global equity universe and identifies companies with business exposure to the nuclear power ecosystem, as determined by Bloomberg Intelligence (BI). Companies are scored based on a combined assessment of their current and potential revenue exposure to nuclear power and their competitive positioning within the sector.

A key point exists regarding index eligibility. A press release states the index selects companies from BI’s “Gold and Silver” tiers. However, the official index description on First Trust’s website states that only companies within the “Gold Tier,” those with the highest exposure, are eligible for inclusion. Investors should consult the fund’s prospectus for definitive construction rules.

From the eligible pool, up to 50 securities with the highest revenue assessments are selected, weighted by a modified market capitalization methodology. The index caps individual holdings at 4.5% and has a minimum weight of 0.25%. It is rebalanced and reconstituted on a quarterly basis.

Geographically, the fund is dominated by U.S. equities (41.92%), followed by significant exposure to Japan (13.83%), Canada (13.07%), South Korea (7.79%), and the United Kingdom (6.28%). Sector exposure is concentrated in Utilities (27.09%) and Industrials, the latter through companies in Electrical Equipment (13.24%) and Aerospace & Defense (12.68%).

First Trust has linked the launch’s rationale to growing global electricity demand, specifically citing power needs from artificial intelligence data centers and the intermittent nature of renewable sources like wind and solar. The firm’s management believes nuclear power is “primed for a resurgence” as a source of consistent, baseload energy.

Considerations for Investors

The ETF offers a targeted, thematic approach to the nuclear industry. Its 0.70% expense ratio is higher than broad-market equity ETFs but is positioned as a cost-effective tool for specific thematic exposure.

As a non-diversified, sector-specific fund, it carries higher concentration risk than a broad market portfolio. Its performance will be tied to the nuclear power industry’s fortunes, which are influenced by government policy, regulatory decisions, technological advancements, and public sentiment.

Investors can trade the UCITS ETF on the London Stock Exchange in both US Dollars (ticker: RCTU LN) and British Pounds (ticker: RCTR LN).

Source: ETFWorld