Nuclear energy-focused exchange traded funds (ETFs) have been showing a few signs of life, thanks to some big moves that could mark a turning point for the industry and its investors.
The ETFs have gotten a big boost as a result of government action. Members of a State House committee in Minnesota approved a bill last week that would lift a 17-year-old ban on new nuclear power plants. [Nuclear ETFs Cope With Industry’s Image.]
If the bill passes, it will widen the options power companies have to bring energy to the public. Although building new power plants would be costly, it could stabilize energy rates. reports Amanda Lillie for Austin Daily Herald. [Nuclear ETFs Have Power Surge to New Highs.]
Minnesota’s move could have the way for nuclear power growth in other states, so it’s generated a lot of interest.
Meanwhile, nuclear fusion may become a viable way of producing energy, thanks to the efforts of a few researchers. The process of fusing two atomic nuclei together requires a massive amount of energy, reports Alternative Energy Mag. If the process of creating nuclear fusion efficiently becomes a reality, it could hurtle ETFs like PowerShares Global Nuclear (NYSEArca: PKN), Market Vectors Nuclear Energy (NYSEArca: NLR) and iShares S&P Global Nuclear Energy (NYSEArca: NUCL) right into the big-time.
Global X Uranium (NYSEArca: URA), a newer play on nuclear energy, is up nearly 10% over the last five days.
Not that they necessarily need it right now; all of these funds are now well above their long-term trend lines and over the last six months, they’re up about 30%. Not bad for a sector that has yet to be fully embraced.
Tisha Guerrero 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.