ETF Spotlight: Nuclear Energy | ETF Trends

Nuclear energy exchange traded funds have performed poorly in 2011 after the Fukushima disaster. Yet the sector ETFs are showing some signs of life with a spike to end November.

“Globally, nations including France, India, Romania, Russia, China, South Korea, and Japan have embraced nuclear power development and possess the technical and industrial expertise to foster the industry’s development. The Energy Information Administration, or EIA, projects electricity demand to grow roughly 25% through 2035, and we don’t believe that recent market turmoil is likely to affect the viability of nuclear power,” Abraham Bailin for Morningstar wrote in an analyst report.

Japan’s nuclear disaster at the Tokyo Electric Power’s Fukushima caused these energy ETFs to fall sharply Investors ran from the sector, and focused on other energy areas such as solar and natural gas. [Nuclear ETFs and the Japan Disaster]

Investors have begun to re-think the nuclear sector and have sent shares up 30% to 66% as new environmental concerns are surfacing with the shale gas exploration method, known as “fracking.” This proves that there is not just one energy source to replace oil. [Will Current Affairs Deter Interest in Nuclear ETFs?]

Income seeking investors will be compelled to know that some nuclear companies and ETFs are paying out dividend yields. [5 ETFs That Could Move on Obama’s Budget]

  • PowerShares Global Nuclear Energy portfolio (NYSEArca: PKN) A dividend yield of 4.3%. There is about $16.5 million in assets under management.
  • iShares S&P Global Nuclear Energy (NYSEArca: NUCL) The market cap for this ETF is $13.55 million, and the dividend yield is at about 3.6%.
  • Market Vectors Nuclear Energy (NYSEArca: NLR) A market cap of $120 million, and a dividend yield of 6%.

Market Vectors Nuclear Energy

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.