NLR’s returns through Q3 places it at the top of its category, outperforming other nuclear energy-related ETFs. NLR provides investors exposure to the full nuclear energy ecosystem as accelerating global power demands and an intensifying drive for clean energy solutions fuel a resurgence in nuclear energy.
The VanEck Uranium and Nuclear ETF (NLR) has recorded a notable 17.29%* return through the third quarter of 2024 and is leading the nuclear energy ETF space amid ongoing demand for low-carbon, reliable power sources. NLR offers investors access to the entire nuclear ecosystem, from utilities to uranium miners and companies developing cutting-edge reactor technology and equipment.
Nuclear energy is experiencing a significant resurgence, driven by three key forces:
- Rapidly growing electricity demand due to the rise of AI technology, electric vehicles and cryptocurrency.
- Demand for reliable, clean energy source in global effort to reduce greenhouse gas emissions.
- Renewed regulatory support from global governments leading to extended plant life, expanding capacity and investment in advanced technologies.
"Nuclear energy’s ability to deliver consistent, low-carbon power makes it an ideal candidate to meet rising electricity needs. This renewed interest is evident in the recent deals by major tech companies to meet the power demands of next-generation data centers, including Microsoft’s agreement with Constellation Energy to restart Three Mile Island and Google’s agreement to purchase power from Kairos Power," said Brandon Rakszawski, Director of Product Management at VanEck. “These deals underscore the critical role nuclear energy plays in enabling the future of technology.”
NLR allows investors to tap into the rising demand for nuclear power within a diversified strategy. The fund provides access to companies that are expected to generate at least 50% of their revenues or assets from uranium, including mining; nuclear plant construction and maintenance; electricity production; and equipment, technology and services for the industry. Key holdings include Constellation Energy; Cameco Corporation, the largest uranium miner in the portfolio; BWX Technologies, an equipment and services provider recently awarded a U.S. contract to explore domestic uranium enrichment; and Oklo, a new addition that is innovating with advanced nuclear power plants and fuel recycling facilities.
“By providing exposure across the entire nuclear energy value chain—such as utilities, which offer stable cash flows—and not only miners, NLR gives investors access to a diversified portfolio that mitigates risk while capturing the upside of this essential industry,” said Rakszawski.
On October 17, VanEck is hosting a webinar to explore the nuclear energy investment opportunity: Nuclear Revival Powers New Opportunities. Discussions will include the investment case for nuclear energy and NLR’s pure-play exposure across the full value chain of the nuclear energy industry.
*Please see below for NLR standardized performance as of 9/30/2024.
About VanEck
VanEck has a history of looking beyond the financial markets to identify trends that are likely to create impactful investment opportunities. We were one of the first U.S. asset managers to offer investors access to international markets. This set the tone for the firm’s drive to identify asset classes and trends – including gold investing in 1968, emerging markets in 1993, and exchange traded funds in 2006 – that subsequently shaped the investment management industry.
Today, VanEck offers active and passive strategies with compelling exposures supported by well-designed investment processes. As of September 30, 2024, VanEck managed approximately $118.3 billion in assets, including mutual funds, ETFs and institutional accounts. The firm’s capabilities range from core investment opportunities to more specialized exposures to enhance portfolio diversification. Our actively managed strategies are fueled by in-depth, bottom-up research and security selection from portfolio managers with direct experience in the sectors and regions in which they invest. Investability, liquidity, diversity, and transparency are key to the experienced decision-making around market and index selection underlying VanEck’s passive strategies.
Since our founding in 1955, putting our clients’ interests first, in all market environments, has been at the heart of the firm’s mission.
Disclosures
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned are unknown. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its other employees.
An investment in the Fund may be subject to risks which include, but are not limited to, risks related to investments in nuclear energy companies, energy sector, utilities sector, industrials sector, special risk considerations of investing in Asian, Canadian, European and Australian issuers, foreign securities, foreign currency, depositary receipts, small- and medium-capitalization companies, cash transactions, equity securities, market, operational, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount and liquidity of fund shares, issuer-specific changes, non-diversified, index-related concentration and high portfolio turnover risks, all of which may adversely affect the Fund. Foreign investments are subject to risks, which include changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations, and changes in currency exchange rates that may negatively impact the Fund's return. Small- and medium-capitalization companies may be subject to elevated risks.
Average Annual Total Returns† as of September 30, 2024
|
|
3 MO
|
YTD
|
1 Yr
|
5 Yr
|
10 YR
|
Inception
(8/13/07)
|
|
NLR (NAV)
|
4.46
|
17.29
|
23.80
|
13.89
|
8.42
|
1.36
|
|
NLR (Share Price)
|
4.48
|
16.49
|
23.28
|
13.82
|
8.39
|
1.34
|
†Returns less than one year are not annualized.
The performance data quoted represents past performance. Past performance is not a guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Please call 800.826.2333 or visit vaneck.com for performance current to the most recent month ended.
NLR Gross Expense Ratio – 0.64%, Net Expense Ratio – 0.61%
Van Eck Associates Corporation (the "Adviser") has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, trading expenses, taxes and extraordinary expenses) from exceeding 0.60% of the Fund's average daily net assets per year until at least May 1, 2025.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of a Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
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