The VanEck Uranium and Nuclear ETF (NLR) has achieved an impressive 17.29%* return through Q3 2024, emerging as a leader in the nuclear energy ETF space amid rising demand for low-carbon, reliable power sources. NLR provides investors access to the entire nuclear energy ecosystem, from utilities and uranium miners to companies developing advanced reactor technologies.
Nuclear energy is witnessing a revival, driven by three key factors:
- Rapidly growing electricity demand fueled by AI, electric vehicles, and cryptocurrency.
- A global push for reliable, clean energy to reduce greenhouse gas emissions.
- Renewed government support, leading to plant life extensions, capacity expansion, and investments in advanced technologies.
“Nuclear energy’s ability to deliver consistent, low-carbon power makes it an ideal solution for rising electricity needs,” said Brandon Rakszawski, Director of Product Management at VanEck. He cited deals such as Microsoft’s partnership with Constellation Energy to restart Three Mile Island and Google’s agreement with Kairos Power to power next-gen data centers as evidence of nuclear energy’s critical role in supporting future technology.
NLR offers a diversified strategy that captures the growing demand for nuclear power. The fund includes companies generating at least 50% of their revenues or assets from uranium mining, nuclear plant construction, electricity production, and industry equipment and technology. Notable holdings include Constellation Energy, Cameco Corporation (the largest uranium miner in the portfolio), BWX Technologies (recently awarded a U.S. contract for domestic uranium enrichment), and Oklo, a company innovating with advanced nuclear plants and fuel recycling.
“By offering exposure across the entire nuclear energy value chain, from stable cash flow utilities to uranium miners, NLR provides a diversified portfolio that mitigates risk while capturing the upside of this essential industry,” Rakszawski added.
