Best Nuclear Energy ETF

Nuclear energy is clean energy that is reliable and cost-effective. This low-carbon energy can also lower the carbon footprint, and investors are cashing in on the opportunity. Nuclear energy exchange-traded funds (ETFs) give investors exposure to companies that are involved with various segments of nuclear energy, such as mining companies, nuclear power facilities and service providers. Investors who want to capitalize on this clean energy source may want to consider these ETFs.

5 Best Nuclear Energy ETF

You don’t have to pick individual nuclear energy stocks. The top nuclear energy ETFs hold onto several companies and give investors broad exposure to the sustainable energy source.

1. Global X Uranium ETF (NYSEARCA: URA)

Uranium is a critical material that is required for nuclear fission. Most nuclear plants use this material, and the Global X Uranium ETF gives investors exposure to this resource. The ETF has generated an annualized return of 13.29% over the past five years and has a 0.69% expense ratio. The fund holds on to 47 stocks, and the top three positions are Cameco (24.87%), Sprott Physical Uranium Trust (9.18%) and NextGen Energy (6.02%). The fund’s top three sectors ranked by exposure are Energy (55.0%), Industrials (24.0%) and Materials (18.8%). 

2. Sprott Uranium Miners ETF (NYSEARCA: URNM)

The Sprott Uranium Miners ETF focuses on pure-play uranium mining companies and corporations that support the industry. The fund has generated annualized returns of 39.90% over the past three years and has a 0.85% expense ratio. The ETF holds onto 37 stocks, and the top three holdings are Cameco (17.24%), NAC Kazatomprom (12.92%) and Sprott Physical Uranium Trust (12.16%).

3. VanEck Uranium+Nuclear Energy ETF (NYSEARCA: NLR)

The VanEck Uranium+Nuclear Energy ETF has generated a 10.53% year-to-date return and has a 0.61% expense ratio. The fund invests in companies that earn at least 50% of their revenue from the nuclear energy industry. Large conglomerates with small nuclear energy business segments do not get considered for this fund. The ETF’s top three holdings are Constellation Energy (8.07%), Public Service Enterprise Group (7.81%) and PG&E (7.00%). The fund’s top three sectors are Energy (43.73%), Utilities (42.46%) and Industrials (11.70%).

4. Sprott Physical Uranium Trust (OTCMKTS: SRUUF)

The Sprott Physical Uranium Trust has returned 17.19% to investors over the past year and has a 0.70% expense ratio. SRUUF is the only publicly-listed physical uranium fund currently on the market. Instead of acquiring stocks that stand to benefit from uranium, SRUUF acquires pounds of uranium. The fund currently has 61.7 million pounds of uranium.

5. Global X Renewable Energy Producers ETF (NASDAQ: RNRG)

Although this ETF is not a pure play into nuclear energy, the fund gives investors access to many companies working on renewable energy. The fund is down 6% year-to-date and has a 0.66% expense ratio. The fund has 47 holdings, and the top three holdings are Orsted A/S (6.92%), Eletrobras (6.54%) and Verbund (6.52%). 

What is a Nuclear Energy ETF?

A nuclear energy ETF is a fund that invests in companies involved with nuclear energy. Some companies find and refine the materials, while other companies have facilities that use nuclear energy. 

Why Invest in Nuclear Energy ETFs?

Nuclear energy ETFs give investors instant portfolio diversification in the nuclear energy industry. Investors do not have to worry about picking individual nuclear energy stocks and can streamline their portfolios. Investors then only have to stay on top of one ETF and how it performs instead of monitoring several nuclear energy stocks.

Where to Invest in Nuclear Energy ETFs

Nuclear energy investors can choose from several brokers. Accessing great features and paying lower fees on every trade can help you achieve your financial goals sooner. These are some of the top brokers to consider for your nuclear energy ETF investments.

Diversify Your Portfolio with Nuclear Energy ETFs

Nuclear energy ETFs give investors broad exposure to the nuclear energy industry. You don’t have to worry about picking individual stocks and can still capitalize on the trend if one nuclear energy company falters. An ETF minimizes risk by spreading it across several assets and can give you a good opportunity to capitalize on nuclear energy. Investors should assess their financial objectives before considering nuclear energy ETFs for their portfolios.

Frequently Asked Questions 

Best Nuclear Energy ETF Methodology

The best nuclear energy ETF methodology involved looking for ETFs that had a strong focus on nuclear energy. This methodology also considered ETFs focused on uranium since that material is critical for nuclear energy.