PowerShares is getting in on the global nuclear energy sector with a new exchange traded fund (ETF). The anticipated launch date for the PowerShares Global Nuclear Energy Portfolio (PKN) is April 3.
PowerShares President Bruce Bond says a higher standard of living, rising oil prices and increasing demand for cleaner sources of energy are trends that could fuel the growth of the nuclear energy industry.
Around 16% of the world’s electrical energy comes from nuclear generation. About 439 reactors are online, and another 222 are in the planning or construction stages. Developed countries and the growing middle class in emerging markets is contributing to increased energy demand that can only be met with nuclear reactors.
PKN will follow an index of 66 stocks that includes reactors, utilities, construction, technology, equipment, service providers and fuels, report Katy Marquardt and Kirk Shinkle for U.S. News.
The Global Nuclear Energy Portfolio will join another nuclear ETF, the Market Vectors Nuclear Energy ETF (NLR). The fund, which launched last August, tracks 38 companies worldwide that focus on uranium mining, enrichment and storage. Nuclear plant infrastructure, fuel transportation, energy generation and equipment are all involved.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.