Solactive is pleased to extend its collaboration with Hanwha Asset Management with the launch of the Hanwha PLUS Global Nuclear Energy Value Chain ETF, which tracks the Solactive Global Nuclear Energy Value Chain Index. Amidst the ongoing global push for decarbonization, this ETF offers investors targeted exposure to the nuclear energy sector, a cornerstone of the global transition to clean, reliable energy systems.
Nuclear energy is regaining momentum as a critical component of green energy transition. The International Atomic Energy Agency (IAEA) projects that global nuclear capacity could double by 2050, driven by technological advancements in Small Modular Reactors (SMRs) and increasing investments. [1] To achieve these ambitious targets, annual global investment in nuclear energy will need to increase to USD 125 billion, up from an average of around USD 50 billion between 2017 and 2023, which indicates significant growth opportunities for companies operating in the sector. [2] In addition, the increasing use of nuclear energy by major technology companies such as Microsoft and Google underlines its importance in meeting the energy-intensive needs of the digital economy.[3] Hence, these developments highlight the transformative potential of the industry, and represent captivating investment opportunities.
The Solactive Global Nuclear Energy Value Chain Index aims to provide exposure to companies operating across the entire nuclear energy value chain. The index selects North America or Developed Markets Europe companies involved in upstream activities, such as uranium mining and fuel cycle operations, and downstream activities, including nuclear technology, power generation and reactor design using a granular classification framework. In addition, the index utilizes ARTIS®, Solactive’s proprietary natural language processing technology, to identify companies with significant exposure and relevance to the nuclear energy industry. Also, the index incorporates Uranium Trust ETFs, such as the Sprott Physical Uranium Trust, providing direct exposure to uranium as a key resource. 50% of the total weight is allocated to upstream activities, 40% to downstream activities and 10% to Uranium Trust ETFs, with the weight of each constituent capped at 20% to ensure diversification and balanced exposure to both large-cap leaders and niche players in the nuclear energy sector.
The ETF listed on 14 January on the Korea Stock Exchange with the ticker code A0007G0.
Timo Pfeiffer, Chief Markets Officer at Solactive, commented: “We are excited to partner with Hanwha Asset Management on the launch of the Hanwha PLUS Global Nuclear Energy Value Chain ETF. The Solactive Global Nuclear Energy Value Chain Index provides a comprehensive investment portfolio of the dynamic and evolving nuclear energy industry, capturing key players across the value chain and highlighting the sector’s role in meeting global energy demands.”
Junkil Yun, ETF Management Team Leader at Hanwha Asset Management, commented: “We are pleased to collaborate with Solactive to launch our first product in 2025. Nuclear energy is emerging as the most efficient solution to energy crisis in the AI era. The PLUS Global Nuclear Value Chain ETF is comprised of companies that form the core of the nuclear industry.”
[1] IAEA Annual Projections Rise Again as Countries Turn to Nuclear for Energy Security and Climate Action
[2] New IAEA Report on Climate Change and Nuclear Power Focuses on Financing
[3] Hungry for Energy, Amazon, Google and Microsoft Turn to Nuclear Power
