Core Insights - The nuclear energy sector is experiencing a revival due to macroeconomic shifts and technological innovations, presenting investment opportunities as the landscape evolves [1] - Global events, particularly the Russian invasion of Ukraine, have highlighted the importance of energy security, pushing nuclear power into the spotlight as a stable, low-carbon energy source [2] - Demand from the AI and technology sectors is a significant catalyst for renewed nuclear investment, with major companies expressing a need for reliable power [3][4] Investment Opportunities - Nuclear energy is characterized as clean, safe, base load, and scalable, making it an attractive investment despite current high costs and long construction times [5] - Safety data indicates that nuclear power is the safest form of energy per terawatt hour produced, even safer than wind, solar, or fossil fuels [6] - New policy efforts aim to reduce regulatory barriers, which have historically hindered the growth of nuclear energy [6] Portfolio Construction - Nuclear energy is positioned as a high-growth thematic allocation for portfolios, with a distinction between long-term exposure to nuclear and the cyclical nature of uranium investing [7] - The Range Nuclear Renaissance Index ETF (NUKZ) serves as a vehicle for investors looking to gain exposure to the nuclear energy sector [7]

VettaFi recently sat down with Range Fund Holdings founder and CEO Tim Rotolo to discuss the exciting investment opportunity for nuclear energy. He brings unique expertise in this area, having founded North Shore Indices, which launched the uranium mining index URNMX in 2019. Rotolo also designed the Range Nuclear Renaissance Index (NUKZX). It underlies the Range Nuclear Renaissance Index ETF (NUKZ). Why nuclear? Why now? Global electricity demand is accelerating as AI data centers, electrification, and ec ...

Core Insights - The shift in U.S. policy under the Trump administration has negatively impacted the renewable energy sector, while electricity demand, particularly from AI-driven data centers, has surged, creating a potential opportunity for nuclear energy stocks [1] - The Range Nuclear Renaissance Index ETF (NUKZ) has shown strong performance, returning 76.3% over the past year, outperforming other nuclear energy ETFs [2] Nuclear Energy ETF Overview - NUKZ focuses on a diverse range of nuclear energy stocks, including utilities, advanced reactors, construction & services, and fuel, allowing for exposure to both innovation and stable utility investments [3] - The ETF charges an 85 basis point fee and tracks the Range Nuclear Renaissance Index [2] Key Holdings and Performance - Constellation Energy Corporation (CEG) is the largest holding in NUKZ, contributing significantly to its performance with a year-to-date return of 60.8% and a 23% return on equity [3] - Quanta Services (PWR) also plays a crucial role in the ETF, returning 33% year-to-date and benefiting from infrastructure needs related to AI [4] Investment Considerations - With increasing electricity demand, NUKZ may be a strategic addition to an equities allocation for investors looking to capitalize on the nuclear energy sector [5]

Core Insights - Global electricity needs are increasing, leading to heightened interest in nuclear energy among investors and industries [1] - The U.S. is the largest producer of nuclear power, contributing approximately 30% to global nuclear electricity generation [2] - Nuclear reactors generated a record 2667 TWh of electricity in 2024, surpassing previous records [4] Industry Trends - Over 70 gigawatts of new nuclear capacity are currently under construction globally, marking one of the highest levels in the last 30 years [5] - Big technology companies are investing in nuclear energy to support their data centers and AI growth, with demand expected to rise across various industries [6] - Small Modular Reactors (SMRs) are gaining interest for their faster construction times and potential cost reductions, with projections of reaching 80 GW by 2040 [9] Financial Aspects - Financing nuclear projects remains a challenge due to high costs and market volatility, necessitating stable cash flow mechanisms [7][8] - Green bond issuances for nuclear energy have raised over $5 billion, primarily for project refinancing and lifetime extensions [8] Government Initiatives - Recent executive orders in the U.S. aim to accelerate nuclear reactor development and quadruple nuclear generating capacity by 2025 [10] Investment Opportunities - Nuclear-focused exchange-traded funds (ETFs) have seen significant gains over the past year, with notable increases such as 88% for the Range Nuclear Renaissance Index ETF [12]