Korea Investment Management has launched the KIM ACE US SMR Nuclear Top 10 ETF, an exchange-traded fund that invests in U.S. companies at the forefront of the nuclear energy resurgence, with a specific focus on Small Modular Reactor (SMR) technology.
Sign up to our free newsletters
By ETFWorld.co.uk
Nam Yongsoo, Head of ETF Management at Korea Investment Management
The fund was listed on the Korea Exchange (KRX) on February 3, 2026.
The ETF is based on the Solactive US SMR Nuclear Top 10 Index, which selects ten companies with significant thematic exposure to the nuclear value chain, identified through a proprietary natural language processing algorithm.
Context: The Strategic Return of Nuclear and the Role of SMRs
Nuclear energy is regaining importance in global energy planning. The need to decarbonize energy systems while ensuring grid reliability and stability has led to a reevaluation of this power source.
In this context, Small Modular Reactors (SMRs) represent a significant innovation. Compared to traditional reactors, they offer reduced power output (typically under 300 MW), construction modularity, advanced safety standards, and the potential for scalable deployment. Beyond contributing to national energy transitions, SMRs are seen as a potential solution for powering high-demand digital infrastructure, such as data centers and AI computing facilities.
ETF Composition and Structure
The uniqueness of this ETF is its concentrated exposure on the initial and fundamental stages of the SMR supply chain. At the launch date, approximately 80% of the portfolio is composed of SMR design companies and nuclear fuel firms.
The portfolio construction follows precise rules:
The top four stocks by thematic relevance have a fixed combined weighting of about 70%.
The remaining six stocks (the 30%) are weighted by market capitalization.
Timo Pfeiffer, Chief Markets Officer at Solactive, commented: “We are pleased to partner again with Korea Investment Management, this time focusing on an emerging thematic area within the clean energy landscape. The Solactive US SMR Nuclear Top 10 Index represents a transparent and focused framework for measuring activity in nuclear innovation, particularly in the SMR segment.”
Seyoung Mo, Head of the ETF Product Strategy Dept. at Korea Investment Management, added: “Amid intensifying global competition for energy leadership, with governments and tech giants alike racing to secure power for AI, we see strong growth potential in SMRs, which are expected to play an important role in supporting AI infrastructure. We believe this ETF allows investors to benefit from SMR growth while also offering access to the broader U.S. nuclear value chain.”
Nam Yongsoo, Head of ETF Management at Korea Investment Management, emphasized the strategic nature of the investment: “In the age of artificial intelligence, energy and technology have become strategic resources, and SMRs are an indispensable theme in this context.” He also recommended a “medium-to-long-term approach rather than a short-term one.”
Risks and Critical Considerations
Despite the optimism, SMR development is not without challenges. A J.P. Morgan analysis reports that the few existing or under-construction SMR projects globally have experienced significant cost overruns (up to 700%) and delays compared to initial construction timelines of 3-4 years.
A study by Stanford University and the University of British Columbia further highlights that, per unit of energy produced, SMRs could generate larger volumes of nuclear waste than traditional reactors, an aspect that contradicts one of their often-promoted advantages.
The KIM ACE US SMR Nuclear Top 10 ETF offers investors a focused vehicle for exposure to a high-growth but complex investment theme. It combines a bet on the technological innovation of SMRs with exposure to the recovery of the entire U.S. nuclear supply chain.
Investing in this sector requires a medium-to-long-term perspective, given the still pre-commercial phase of SMR technology and the typically long development and regulatory cycles in nuclear energy. Investors must carefully weigh potential returns against the associated technological, project, and regulatory risks
Source : ETFWorld.co.uk
Subscribe to Our Newsletter
