There was a time when nuclear was cast aside in the global energy conversation, almost viewed as “taboo.” In recent years, however, that image has dramatically improved. Sentiment is rapidly turning as nuclear gains momentum as a credible, reliable source of clean energy. Recent polling data may have some positive implications for ETFs such as the ALPS Nautilus SMR, Nuclear & Technology ETF (SMRF).
SMRF, which debuted in February, is a “right place, right time” ETF. It provides exposure to nuclear and small modular reactor (SMR) companies and the artificial intelligence (AI) firms embracing that energy source.
Read more: Astera Labs Leads SMRF’s 21% Gain on AI Infrastructure
That is to say, SMRF covers a lot of bases at the intersection of AI and nuclear. When the news flow hits right, this ETF benefits. That’s highlighted by a gain of more than 20% since the end of March. Speaking of headlines, the general public is somewhat positive on nuclear.
“Majorities of Americans continue to prefer that the U.S. put more emphasis on solar and wind power for domestic energy production, but fewer now hold that view than in any of five measurements over the past 13 years. At the same time, support for greater emphasis on nuclear power has risen to its highest point to date, at 46%,” according to Gallup.
Nuclear Could Be Heading to Space
The Gallup poll indicates that while public sentiment is improving, even some supporters don’t want nuclear power plants built in their communities. That’s a logical response, and one that some SMRF member firms are able to indulge.
Interestingly, if the White House has its way, nuclear energy could eventually head to space — a potentially compelling theme ahead of the SpaceX IPO. For now, there are not direct ties between SMRF and SpaceX. However, some politicians clearly see an opportunity between nuclear and the final frontier.
“Nuclear power in space will give us the sustained electricity, heating, and propulsion essential to a permanent presence on the Moon, Mars, and beyond,” according to a recent memo issued by the White House Office of Science and Technology Policy.
NASA and the Department of Energy (DOE) are incentivized to push U.S. nuclear space ambitions. That’s because China and Russia are aiming to launch a lunar nuclear facility in the late 2030s.
Investors considering SMRF may want to evaluate the DOE’s recently unveiled “Nuclear Dominance — 3 by 33.” Some experts believe it contains nuclear industry catalysts to emerge over the near-term.
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VettaFi LLC (“VettaFi”) is the index provider for SMRF, for which it receives an index licensing fee. However, SMRF is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of SMRF.