The Nuclear Power Revival: An ETF for the Full Supply Chain

VanEck Uranium+Nuclear Energy ETF US92189F6016

A powerful combination of factors is fueling a remarkable resurgence for nuclear energy. The global transition to cleaner power sources, coupled with the enormous and growing electricity demands of artificial intelligence, is creating what many analysts are calling a nuclear renaissance. At the center of this shift, uranium prices have climbed to multi-year highs, and one exchange-traded fund is designed to capture value across the entire industry spectrum, from raw materials to power generation.

Two primary forces are propelling the sector forward. On the supply side, a structural shortage of uranium is being intensified by significant physical purchases. Notably, the Sprott Physical Uranium Trust has announced plans to raise up to $1 billion to acquire more of the commodity, a move that helps support a spot price currently around $88 per pound.

Simultaneously, a new and substantial source of long-term demand is emerging from the technology industry. Major corporations, including Meta and Microsoft, are entering into direct power purchase agreements with nuclear plant operators. Their goal is to secure reliable, low-carbon electricity for the energy-intensive data centers that power AI applications. This trend is effectively transforming nuclear facilities from mere power suppliers into essential digital-age infrastructure.

Capturing the Entire Value Chain

The VanEck Uranium+Nuclear Energy ETF (ticker: NLR) adopts a comprehensive strategy. Instead of focusing solely on uranium miners, it provides exposure to the complete nuclear ecosystem. Its top holdings illustrate this broad approach. A 9.07% allocation to mining giant Cameco offers direct upside from rising commodity prices. Concurrently, a 5.48% position in Constellation Energy, the largest U.S. nuclear plant operator, gives investors access to the stable, long-term revenue streams from utility contracts with tech firms.

This blend of "picks and shovels" mining companies and more regulated utility operators is intended to mitigate the volatility typically associated with pure commodity-focused funds. The ETF is currently trading near $155.70 and has delivered a strong twelve-month return of approximately 59%.

Market Positioning and Competitive Landscape

NLR occupies a middle ground within the niche of nuclear-focused investment products. It is often compared to the Global X Uranium ETF (URA), which has a heavier concentration on major mining companies, and the Sprott Junior Uranium Miners ETF (URNJ), which targets smaller exploration firms. NLR's wider scope resulted in slightly lower returns than URA during the recent sector rally but may offer greater stability should uranium prices experience a pullback.

The sector's near-term trajectory will likely be influenced by the continued execution of billion-dollar physical uranium acquisition programs and the operational performance of major miners. For investors seeking a diversified entry point into the broader nuclear revival—beyond just the raw material—the NLR ETF presents one strategic option.

@ boerse-global.de | US92189F6016 THE