Industry Updates

WisdomTree adds nuclear to multi-megatrend thematic ETF

Only non-tech theme to be overweighted

Lauren Gibbons

Pierre Debru

WisdomTree has added nuclear to its multi thematic ETF amid growing recognition of the theme’s central role in the energy transition.

The WisdomTree Megatrends UCITS ETF (WMGT) will see nuclear assigned the fifth-highest weighting at 9%.

This follows semiconductors (11.7%), AI and big data (11.6%), blockchain (11.6%), cloud computing (11.6%) and cybersecurity (10.5%).

Nuclear is the only non-tech theme in the ETF to be overweighted.

WisdomTree has also added an energy transition metals theme to WMGT with a 3.8% weighting.

The firm said the addition of nuclear is justified as it has a “significant role” to play in the future energy mix.

Nuclear has been touted as a better renewable energy source than solar, wind, hydroelectricity and biomass as they often depend on variable factors like weather.

Additionally, the firm said nuclear energy is gaining political and financial backing globally as highlighted by its inclusion in the EU taxonomy.

Nuclear has been given the highest weighing under WMGT’s environmental themes, further underscoring the firm’s conviction in nuclear as a viable energy source in the energy transition.

Pierre Debru (pictured), head of quantitative research and multi asset solutions at WisdomTree, said: “Nuclear is a diversifying theme for our multi-thematic strategy, with low correlation to the rest of the theme.

“The theme is also showing strong tailwinds with $260m inflows in 2023 and a performance of 42.5% over the year.”

Last month, Courtville Partners added VanEck’s uranium ETF to its model portfolio, allocating a 2% weighting in its alternatives bucket.

WMGT launched in December 2023 has since returned 9.1%.

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