In this article, we will look at the 5 best nuclear ETFs to buy now. If you want to explore more nuclear ETFs that you can add to your portfolio, you can also take a look at 10 Best Nuclear ETFs to Buy Now.
5. VanEck Uranium+Nuclear Energy ETF (NYSEARCA:NLR)
Expense Ratio: 0.60%
VanEck Vectors Uranium+Nuclear Energy ETF (NYSEARCA:NLR) is an exchange-traded fund that seeks to track the performance of the MVIS Global Uranium & Nuclear Energy Index and uses a full replication technique. The ETF invests in companies of different market caps that operate in the energy, utilities, uranium ores, and nuclear fuel sectors among others. VanEck Vectors Uranium+Nuclear Energy ETF (NYSEARCA:NLR) has an expense ratio of 0.60% and a top 10 holdings concentration of 62.37%.
One of the most prominent holdings of VanEck Vectors Uranium+Nuclear Energy ETF (NYSEARCA:NLR) is Dominion Energy, Inc. (NYSE:D), one of the largest operators of nuclear facilities in the United States. As of September 5, Dominion Energy, Inc. (NYSE:D) has gained 6.94% over the past twelve months.
On July 18, Barclays analyst Eric Beaumont revised his price target on Dominion Energy, Inc. (NYSE:D) to $86 from $93 and reiterated an Equal Weight rating on the shares.
Out of the hedge funds being tracked by Insider Monkey, As of Q2 2022, Diamond Hill Capital is the most prominent shareholder in Dominion Energy, Inc. (NYSE:D). As of June 30, Diamond Hill Capital’s stakes in the company are valued at $262.85 million and the investment covers 1.14% of the fund’s 13F portfolio.
4. Global X Uranium ETF (NYSEARCA:URA)
Expense Ratio: 0.69%
Global X Uranium ETF (NYSEARCA:URA) is an ETF that tracks the performance of the Solactive Global Uranium & Nuclear Components Total Return Index and employs a full replication technique. The fund invests in companies operating in the energy, oil, gas & consumable fuels, coal & consumable fuels, and uranium ore sectors. Global X Uranium ETF (NYSEARCA:URA) has a top 10 holdings concentration of 62.59% and an expense ratio of 0.69%.
One of the top holdings of the Global X Uranium ETF (NYSEARCA:URA) is Cameco Corporation (NYSE:CCJ), one of the world’s largest providers of uranium. On August 17, GLJ Research analyst Gordon Johnson raised his price target on Cameco Corporation (NYSE:CCJ) to a “Street-high” of C$48.40 from C$37.86 and reiterated a Buy rating on the shares.
Out of the hedge funds tracked by Insider Monkey, as of June 30 Driehaus Capital is the largest shareholder in Cameco Corporation (NYSE:CCJ) and owns roughly 4.9 million shares of the company. The investment covers 1.69% of Driehaus Capital’s 13F portfolio.
Here is what Aristotle Capital Management had to say about Cameco Corporation (NYSE:CCJ) in its “Global Equity Fund” first-quarter 2022 investor letter:
“Cameco, the world’s largest publicly traded uranium producer, was a primary contributor for the quarter. After years of stringent operational discipline that included production cuts, inventory reduction and market purchases, the company has reported strengthening market fundamentals, as industry-wide supply concerns continue to abate. The improving conditions can provide Cameco significant leverage to drive higher prices under its market-related contracts. Moreover, the company has obtained 70 million pounds of additional long-term contracts since the beginning of 2021, demonstrating Cameco’s strong position to capture increasing demand. Nevertheless, management has reiterated its commitment to maintaining supply discipline while continuing to invest in operational efficiency through automation, digitization and training. As such, the company expects to see significant improvements in cash flow generation, as it ramps up to its 2024 planned production capacity. We believe Cameco’s disciplined approach and conservative financial management continue to reinforce its long-term position and its ability to return value to shareholders. This was recently demonstrated when Cameco’s board approved a 50% increase to the company’s annual dividend for 2022.”
3. Sprott Uranium Miners ETF (NYSEARCA:URNM)
Expense Ratio: 0.85%
Sprott Uranium Miners ETF (NYSEARCA:URNM) is an exchange-traded fund that leverages a full replication technique to track the performance of the North Shore Global Uranium Mining Index. The fund invests in growth and value stocks of companies that operate in energy, oil, gas & consumable fuels, coal & consumable fuels, and uranium ores segments. Sprott Uranium Miners ETF (NYSEARCA:URNM) has an expense ratio of 0.85% and a top 10 holdings concentration of 75.10%.
One of the top holdings of the Sprott Uranium Miners ETF (NYSEARCA:URNM) is Denison Mines Corp. (NYSE:DNN). Denison Mines Corp. (NYSE:DNN) is a leading Canadian uranium mining and exploration company. Wall Street is bullish on Denison Mines Corp. (NYSE:DNN) and the uranium sector in the current energy turbulence. On August 24, TD Securities analyst Craig Hutchison resumed coverage of Denison Mines Corp. (NYSE:DNN) with a Speculative Buy and a price target of C$2.25.
As of June 30, Titan Global Capital owns more than 6 million shares of Denison Mines Corp. (NYSE:DNN) and is the largest shareholder in the company. The fund’s stakes are valued at $5.9 million.
2. Utilities Select Sector SPDR ETF (NYSEARCA:XLU)
Expense Ratio: 0.10%
The Utilities Select Sector SPDR ETF (NYSEARCA:XLU) invests in utility companies of varying market capitalizations. The ETF tracks the performance of the Utilities Select Sector Index and the S&P 500 Index and employs a full replication technique. The Utilities Select Sector SPDR ETF (NYSEARCA:XLU) has an expense ratio of 0.10% and a top 10 holdings concentration of 62.61%.
One of the top holdings of the Utilities Select Sector SPDR ETF (NYSEARCA:XLU) is NextEra Energy, Inc. (NYSE:NEE). NextEra Energy, Inc. (NYSE:NEE) is one of the largest operators of nuclear facilities in the United States. As of June 30, Fisher Asset Management owns roughly 16.2 million shares of NextEra Energy, Inc. (NYSE:NEE) and is the largest shareholder in the company. The investment covers 0.88% of Ken Fisher’s 13F portfolio.
On August 18, Morgan Stanley analyst Stephen Byrd raised his price target on NextEra Energy, Inc. (NYSE:NEE) to $94 from $83 and maintained an Equal Weight rating on the shares.
Here is what asset management firm, ClearBridge Investments had to say about NextEra Energy, Inc. (NYSE:NEE) in its second-quarter 2022 investor letter:
“We increased our exposure to the energy transition during the quarter with new positions in Iberdrola (OTCPK:IBDSF), a Spanish-based integrated utility that is also one of the leading renewable energy developers in the world, and NextEra Energy, Inc. (NYSE:NEE), an integrated utility business with a regulated utility operating in Florida and the largest wind business in the U.S. The war has opened the eyes of the world that energy independence is critical. Renewables are for many countries the only way to get to the target. It is expected that existing renewable project pipelines will be executed faster, and more projects added to existing pipelines.
The energy transition would be extremely helpful for climate change and Iberdrola ranks well on our ESG matrix. NextEra, meanwhile, recently raised future earnings forecasts, citing a very favorable macro environment for rapid renewable generation expansion driven by decarbonization of the U.S. economy and the relative attractiveness of renewable generation in the context of high natural gas and power prices.”
1. Fidelity MSCI Utilities Index ETF (NYSEARCA:FUTY)
Expense Ratio: 0.08%
Fidelity MSCI Utilities Index ETF (NYSEARCA:FUTY) is an exchange-traded fund that invests in growth and value stocks of utility companies of varying market capitalizations. The fund mirrors the performance of the MSCI USA IMI Utilities 25/50 Index and employs a representative sampling technique. Fidelity MSCI Utilities Index ETF (NYSEARCA:FUTY) has a top 10 holdings concentration of 54.30% and an expense ratio of 0.08%.
The Southern Company (NYSE:SO) is one of Fidelity MSCI Utilities Index ETF’s (NYSEARCA:FUTY) top holdings and covers 6.77% of its portfolio. The Southern Company (NYSE:SO) is among the largest utility companies in the United States and generates a major chunk of its energy supply from nuclear power. The company operates 6 nuclear reactors spread across three locations.
As of September 5, The Southern Company (NYSE:SO) has gained 17.65% year to date. On August 4, UBS analyst Ross Fowler upgraded The Southern Company (NYSE:SO) to Buy from Neutral and raised his price target to $87 from $76.
As of June 30, Renaissance Technologies owns more than 1.9 million shares of The Southern Company (NYSE:SO) and is the most prominent shareholder in the company.
You can also take a look at 14 Best Growth Stocks To Buy Now and 12 Best Blue Chip Stocks To Buy Today.
