#7 - VanEck Uranium and Nuclear Energy ETF (NYSEARCA:NLR)
The nuclear energy sector holds a lot of promise, but investing in only one or two stocks may invite more risk than you’re comfortable with. If this sounds like you, the VanEck Uranium and Nuclear Energy ETF (NYSEARCA: NLR) is a solid choice to consider.
The 17-year-old fund tracks a market-cap weighted index of 28 companies in the global nuclear energy industry. As of July 2024, it had $225.62 million of assets under management and an expense ratio of 0.61%, which is comparable to other thematic ETFs.
Since its inception, the fund has fallen 69% from its peak in 2007 to its trough in March 2020. However, in the last five years, the NLR fund has been up 60%, including a 40% gain in the 12 months ending July 8, 2024. A good bit of that gain is being fueled by interest from institutional buyers, who have been heavily buying shares in two of the last three quarters.
About VanEck Uranium+Nuclear Energy ETF
The VanEck Uranium+Nuclear Energy ETF (NLR) is an exchange-traded fund that mostly invests in stocks based on a particular theme. The fund tracks a market-cap-weighted index of companies in the global nuclear energy industry. NLR was launched on Aug 13, 2007 and is managed by VanEck.
- Current Price
- $79.75
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 6 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $96.19 (20.6% Upside)
There have been many false starts regarding nuclear energy in 2024. So why is this time is different?
Consider this information from the World Nuclear Association: There are currently 60 nuclear reactors under construction in 16 countries. Between 2011 and 2020, 65 nuclear reactors were either shut down or did not have their operating licenses extended.
You should also consider that the American energy grid needs rebuilding right at the time that demand for energy, particularly from data centers, has never been higher. This makes a powerful case for nuclear power.
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