As the name suggests, the VanEck Uranium & Nuclear Energy ETF (NLR) provides investors with exposure to companies involved in uranium mining and the broader nuclear energy sector.
VanEck Uranium & Nuclear Energy ETF (NLR) Price & Chart
The NLR seeks to replicate the performance of the MVIS Global Uranium & Nuclear Energy Index, which includes companies engaged in the production and distribution of nuclear energy, as well as companies that are part of the uranium industry.
As the demand for cleaner energy sources grows, nuclear energy is increasingly recognised for its potential to provide a stable and low-carbon energy solution. The NLR ETF was created in 2007, and provides a potential investment opportunity for those looking to participate in the nuclear energy revolution. The fund's total net assets, at the end of January 2025, stand at $814.02 million.
VanEck Uranium & Nuclear Energy ETF (NLR) Performance
Since early March, the ETF has rallied strongly, although there was a somewhat significant pullback between May and August 2024. Meanwhile, in the latter part of 2024 and early part of 2025, the ETF has staged another pullback as concerns about the global economy come into play. Despite the recent decline, its overall performance in recent years reflects the sector's growing importance in the global energy mix, as you can see below. The ETF has delivered the following returns:
| Year | Performance |
|---|---|
| 2025 (YTD) | |
| 2024 | +14.25% |
| 2023 | +36.61% |
| 2022 | +2.30% |
| 2021 | +13.64% |
NLR Top Holdings (mid January, 2025)
| Company | Net Assets (%) |
|---|---|
| Constellation Energy Corp | 24.47% |
| Public Service Enterprise Group | 8.72% |
| PG&E Corp | 6.81% |
| BWX Technologies | 5.73% |
| Cameco Corp | 4.94% |
| Endesa SA | 3.56% |
| Cez As | 3.51% |
| Fortum Oyj | 3.51% |
| Nac Kazatomprom | 3.19% |
| CGN Power Co | 2.63% |
Uranium & Nuclear Energy Forecast
Bull Argument: There are various reasons to believe uranium stocks will rise. For example, the World Nuclear Association says that uranium demand is forecast to grow by 28 percent between 2023 and 2030. Furthermore, an article from Mining.com reveals that Jacob White, the Sprott Physical Uranium Trust ETF product manager, told them that while he is, of course, bullish on the sector, the growing sensitivity to geopolitical factors will mean the “uranium price will continue to behave in this staircase-like pattern over the intermediate term with short-term bouts of volatility.”
When it comes to nuclear, the International Atomic Energy Agency (IAEA) recently revised higher its annual projections for the expansion of nuclear power, suggesting potentially strong demand. This was revised higher for a fourth successive year. “World nuclear capacity is now projected to increase by 2.5 times the current capacity by 2050, in the IAEA’s high case scenario, including a significant contribution from small modular reactors (SMRs),” said the IAEA.
Bear Argument: While most analysts covering the sector(s) are bullish, investors should still be aware of the potential bear arguments and risks to their position. Some analysts have cautioned about the high costs and regulatory challenges associated with nuclear energy projects, while the competition from rapidly advancing renewable energy technologies like solar and wind could pose a challenge to the growth of nuclear energy. Furthermore, geopolitical risks and public concerns over nuclear safety may also impact the sector's development.
Our View: Overall, the VanEck Uranium & Nuclear Energy ETF does present a potentially compelling investment opportunity for those bullish on the nuclear energy sector's growth. While the market is subject to volatility and various risks, the ETF offers diversified exposure to key players in the industry.
Who Should Buy the VanEck Uranium & Nuclear Energy ETF?
As we mentioned in our Global X Uranium ETF page, there is growing interest in the uranium and nuclear sector, but that does not mean investing in the area is for everyone. This ETF is suited to:
- Growth-oriented investors: Individuals seeking exposure to a high-potential sector with long-term growth prospects, may find the ETF appealing. However, increased growth also means increased risk.
- Risk-tolerant investors: As a result, investors should have a higher risk tolerance. The inherent volatility of the uranium and nuclear energy market makes this ETF suitable for those comfortable with higher risk levels.
- Clean Energy/Nuclear-focused investors: It goes without saying that investors looking to invest in clean energy and sustainability themes will find this ETF aligned with their investment goals.
- Long-term investors: Given the growth outlook for the sector, it may be more attractive to those looking to buy and hold for the long-term.
