Why Nuclear ETFs Are Waiting to Exhale | ETF Trends

As the climate change debate intensifies, the push is on to implement nuclear energy. But nuclear exchange traded funds (ETFs) may have to sit tight for awhile until the prospect of new nuclear plants becomes an easier sell.

There are plenty of reasons to think investing in nuclear power will pay off, especially as  global demand for energy rises, concerns over global warming gather steam and erratic fossil-fuel prices and oil and coal plan accidents become more devastating. [Your Guide to Green ETFs.]

Barbara Kollmeyer for MarketWatch reports that nuclear is a tough sell because new reactors are extremely expensive and time-consuming to build, so returns are rarely realized quickly. Safety is another major concern, as disposal of reactor waste is highly problematic, and the financing and building of nuclear plants entail hugely complex processes requiring multiple regulatory approvals.

Steve Gelsi for MarketWatch reports that another setback for nuclear power is that climate legislation to limit carbon-dioxide emissions has failed to move ahead on Capitol Hill after the House of Representatives OK’d a version of legislation in 2009. Recent efforts to revive the bill in the Senate this year have yet to score any big victories. [Nuclear ETFs and the Clean Energy Push.]

For more stories about nuclear energy, visit our nuclear energy category.

  • PowerShares Global Nuclear (NYSEArca: PKN)

  • Market Vectors Nuclear Energy (NYSEArca: NLR)

  • iShares S&P Global Nuclear Energy (NYSEArca: NUCL)

Tisha Guerrero contributed to this post.

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.