#7 - Range Nuclear Renaissance ETF (NYSEARCA:NUKZ)
As tantalizing as the opportunity in nuclear energy may be, it can be difficult for risk-averse investors to stomach buying individual stocks. Another way to gain exposure is through an exchange-traded fund (ETF) such as the Range Nuclear Renaissance Index ETF (NYSEARCA: NUKZ).
One key attribute of the NUKZ ETF is its broad exposure to the nuclear sector. Many ETFs focus heavily on uranium miners, but this ETF invests in companies throughout the entire nuclear supply chain.
The fund has only been trading since February 2024. Some investors criticize the fund's 0.85% expense ratio and utility stock component, which is likely to weigh down returns when the economy is roaring. And they aren't completely wrong; the fund only delivered a return of about 5% in 2024. But with nuclear demand likely to become an increasing part of power generation, this could be a shrewd investment.
About Range Nuclear Renaissance Index ETF
The Range Nuclear Renaissance Index ETF (NUKZ) is an exchange-traded fund that is based on the Range Nuclear Renaissance index. The fund tracks a market cap-weighted index of stocks of companies from around the world that are operating within the nuclear fuel and energy industry. NUKZ was launched on Jan 23, 2024 and is issued by Range.
- Current Price
- $43.38
- Consensus Rating
- N/A
- Ratings Breakdown
- 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
As this presentation shows, there are many catalysts supporting a revival of nuclear power in the coming years. But the good news for investors is that this is still an opportunity that's in the early stages. Ideas like Small Modular Reactors (SMRs) are still in the early innings. And even large-scale nuclear reactors take years to become operational.
That means you don't have to be in a hurry to go all in on any one of these investments. You can build a position over time with the expectation that there will be some volatility in this sector along the way.
If you're not comfortable investing in nuclear stocks but want to add energy exposure to your portfolio, you can check out our premium report, 7 Energy Stocks to Buy and Hold Forever. This report highlights investable ideas in both fossil fuel and renewable energy companies. It's available as an immediate download for MarketBeat All-Access members.
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