Nuclear ETFs Are Picking Up Steam | ETF Trends

In the future, it’s likely we’ll be consuming more electricity generated from nuclear reactors. Both developed and emerging economies are building or planning to build more reactors as a way to wean ourselves off fossil fuels. The renewed nuclear race may provide a huge boost to global nuclear related exchange traded funds (ETFs).

Russia, China, India and other emerging economies are accelerating their plans for nuclear reactors, writes Elliot H. Gue for Investing Daily. China, India and Russia account for half of the world’s 152 planned nuclear reactors. [Warming Up to Nuclear Energy ETFs.]

Russia wants to increase its consumption of energy away from natural gas as a way to boost exports of gas the country produces – the government plans on a 5.5% increase in electricity consumed from non-fuel power sources.

As of Oct. 1, 441 nuclear reactors are operational worldwide, which generate 13 to 14% of the world’s electricity. Around 58 new reactors worldwide are already at some stage of construction and will likely boost nuclear capacity by 16% once completed. China alone is in constructing 23 reactors as we speak.

In the United States, it may have to wait. Lower energy prices, reduced electricity demand and failure to pass climate legislation that would price carbon-gas emissions are impeding the further development of nuclear reactors in the United States, reports Matthew L. Wald for The New York Times.

For more information on nuclear energy, visit our nuclear category. There are three nuclear ETFs in the ETF Analyzer, all of which have outperformed the S&P 500 in the last three months.

  • PowerShares Global Nuclear (NYSEArca: PKN): The United States is 36.7%; Japan is 22.9%; Canada, 10.9%; France, 10%; Australia, 5.4%; South Korea, 4.9%.
  • Market Vectors Nuclear Energy (NYSEArca: NLR): The United States is 35% of this fund, but Canada (22.5%), Japan (17.5%), Australia (12.9%) and France (12.3%) are included, too.
  • iShares S&P Global Nuclear Energy (NYSEArca: NUCL): The United States makes up 33% of NUCL; Japan is 16.8%; Canada, 12.5%; United Kingdom, 8.2%; and Spain, 6.7%.

Max Chen contributed to this article.

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.