Core Insights - Nuclear-related stocks have experienced significant positive momentum this year due to policy support and the increasing demand for reliable, carbon-free power generation [1] - Nuclear-focused ETFs have attracted strong inflows within the broader energy sector over the past year [1] - Investors face challenges in determining the best exposure to the nuclear sector, considering options like uranium miners, utilities, and companies involved in engineering and construction [1] Index Construction - The Range Nuclear Renaissance Index (NUKZ) emphasizes diversification and maximizing risk-adjusted returns, featuring four categories with specific weightings: Construction and Services (35%), Advanced Reactor (30%), Utilities (30%), and Fuel (20%) [2] - Individual company caps enhance diversification, with pre-revenue and pure-play constituents capped at 10%, while diversified companies like Fluor and Dominion Energy are capped at 3% [2] - The index includes developments in advanced reactors, such as small modular reactors (SMRs), while balancing exposure to more stable sectors like construction and utilities [2] Exclusion of Uranium Mining - Uranium mining is notably absent from the index due to its volatility linked to production estimates and geopolitical issues, such as the recent coup in Niger [3] - The Fuel category is capped at 20% to mitigate risks associated with uranium mining, focusing instead on uranium enrichment and conversion [3] - Cameco is highlighted for its integrated business model, which includes exploration and mining, but most fuel companies in the index do not engage in mining activities [3] Conclusion - The diverse landscape of nuclear participants necessitates careful index construction to cater to varying risk profiles [4] - The NUKZ index aims to provide a balanced approach to investing in the nuclear energy sector, which encompasses uranium mining, advanced reactor developers, and utility companies [4]