The nuclear energy sector, along with related exchange traded funds, has been rebounding off an exceptionally bad year. Nuclear ETFs may continue to strengthen as the U.S. announces its commitment to next-generation nuclear reactors.
Market Vectors Nuclear Energy (NYSEArca: NLR) is up 12.9% year-to-date. In comparison, the fund lost 26.2% over the past year. [Why the Uranium ETF is Rallying]
The U.S. Department of Energy affirmed its intent to fund small modular nuclear reactors, or SMRs, advancing the country’s leadership in next generation energy technologies and jump starting our nuclear industry, according to Today’s Energy Solutions.
SMRs are about one-third the size of current nuclear plants. The smaller designs are intended to offer safety, siting, construction and other economic benefits. The reactors can be manufactured offsite and transported to locations where they will be ready to “plug and play.” [ETF Chart of the Day: Nuclear Energy]