Alternative and renewable energy sources have faced some notable uncertainty this year, it must be said. However, while government policy support has dropped off for areas like wind and solar, not all renewable energy sources face such complicated outlooks. Nuclear power is seeing renewed interest around the world, and nuclear stocks may be poised to benefit. These three ETFs could help investors get exposure to that important trend.
See more: 3 Stocks to Watch in Electrification ETF ELFY
What’s powering nuclear stocks demand? Rampant electricity demand growth is certainly playing a part. AI innovation leans on huge data center usage, which itself requires a lot of electricity. What’s more, countries around the world trying to move away from fossil fuels are also boosting nuclear stocks upside.
Nuclear Stocks: 3 ETFs to Consider
So, which ETFs can help investors get that nuclear and uranium exposure? It’s hard to look past the VanEck Uranium and Nuclear ETF (NLR ) as a leading option. NLR charges a 56 basis point (bps) fee for its approach to nuclear stocks, tracking the MVIS Global Uranium & Nuclear Energy index. The fund launched in 2007.
Specifically, NLR invests in the spectrum of nuclear power from uranium to input materials production and plant operation. Its top stock, Santa Clara-based nuclear tech company Oklo, Inc. (OKLO), has returned a whopping 529% YTD. That has helped NLR return 71.4% YTD, itself.
Next in the nuclear stocks ETF landscape, investors can look to the Range Nuclear Renaissance Index ETF (NUKZ ). The fund charges an 85 bps fee to track the Range Nuclear Renaissance Index, with the fund launching last year. NUKZ, like NLR, invests in global nuclear stocks. NUKZ categorizes firms into areas like pure play or diversified nuclear firms. It can also include MLPs with up to 25% of its assets.
The strategy holds stocks like Cameco Corporation (CCO), the world’s largest publicly traded uranium company. CCO has returned 60% YTD, helping NUKZ return 62.7% in that time, as well.
Finally, a fund like (URA ), the Global X Uranium ETF, can offer even more pointed exposure to the fuel source driving nuclear power. Charging 69 bps, the fund tracks the Solactive Global Uranium & Nuclear Components Index. The fund has returned 88% with its singular focus on the uranium value chain. Its weight to both OKLO and CCO together is almost 40% of its portfolio, per ETF Database data.
Together, nuclear stocks have real potential as an investment. ETFs like NUKZ, NLR, and URA can help get exposure to the space, with the category’s potential upside and diversification an intriguing proposition.
For more news, information, and strategy, visit ETFdb.
