First Trust has announced the launch of the First Trust Bloomberg Nuclear Power UCITS ETF (RCTR) on the London Stock Exchange, writing that this expands its thematic family of UCITS ETFs available to European investors.
The firm says that RCTR is designed to provide thematic investors with a single-ticket approach to investing in up to 50 of the most prominent and innovative nuclear power-related companies in the world, as determined by Bloomberg Intelligence. The new fund tracks the Bloomberg Nuclear Power Select Index, which selects companies ranked in Bloomberg Intelligence’s Gold and Silver tiers of the nuclear power ecosystem.
The Gold and Silver tier nuclear power firms are determined by evaluating companies on two criteria: revenue exposure and competitive positioning in the nuclear power space. Within the fund, Gold tier ranked companies are capped at a 4.5 per cent weighting, while Silver tier firms are capped at a 3 per cent, helping to ensure RCTR offers investors a diversified yet focused portfolio of nuclear power innovators, the firm says. The index is rebalanced quarterly.
“We are thrilled to continue our partnership with Bloomberg Intelligence to bring the First Trust Bloomberg Nuclear Power UCITS ETF to the European market, offering investors access to one of the most critical global themes through a cost-effective and highly liquid UCITS wrapper,” says Rupert Haddon, Managing Director at First Trust Global Portfolios.
“Exciting technologies like AI are driving unprecedented demand for electrical power – all while the global economy is relying more heavily on intermittent energy sources like wind and solar. We believe nuclear seems primed for a resurgence in this context, offering consistent, round-the-clock energy for an increasingly demanding global economy.”
RCTR is available for trading on the London Stock Exchange in USD (Ticker: RCTU LN) and GBP (Ticker: RCTR LN). The fund has a Total Expense Ratio (TER) of 0.70 per cent.
