Content and data provided by various third parties and Fidelity − Terms of Use | Help/Glossary
Research > ETFs > ETF / ETP Commentary > 

Look Who’s Investing in Nuclear Power

BY | ETF Database
11/11/2024 | 64 VIEWS
  • Related Symbols
  • NLR
Nuclear energy is experiencing a rebirth and shares of producers of this power source are going along for the ride. Just look at the VanEck Uranium and Nuclear ETF NLR. One of the oldest and largest exchange traded funds in the category, NLR was up 25.61% year-to-date as of Nov. 1.It’s not just nuclear’s status as a viable form of green energy that’ supports NLR bullishness this year. Enthusiasm for nuclear energy stocks and ETFs such as NLR is also rooted in the energy source’s status as a foundational piece in the artificial intelligence (AI) revolution. More technology companies looking to power AI efforts are turning to AI. That could bode well for NLR’s long-term thesis. New AI/nuclear headlines may confirm that much. In recent weeks, Google parent Alphabet (GOOG), Amazon (AMZN), and Microsoft (MSFT) each announced various nuclear investments to ensure they have the energy necessary to power their AI ambitions. Last month, Amazon “revealed three deals, including an investment in startup X-Energy and two development agreements that aim to add around 300 megawatts’ worth of capacity in both the Pacific Northwest and Virginia, two data center hot spots,” reported TechCrunch.Big Tech Could Be Big Catalyst for NuclearThe implications of the AI/nuclear intersection are pertinent to investors considering NLR for multiple reasons. First, AI is still in its early innings, indicating tech’s embrace of nuclear has ample room to grow from here. Second, technology companies have substantial energy needs. As such, they want to consume reliable power that’s cost-efficient and clean. “Nuclear energy has attributes uniquely suited to meet these demands, and tech companies are new customers that could build the order book that is required for new reactors to be deployed,” reported the Atlantic Council. In addition to the massive energy needs of technology companies, these corporations could increasingly lean into nuclear because it’s clean energy. Many tech companies, including those with AI exposure, have long prioritized carbon neutrality and sustainability. However, it can be a delicate balancing act between sustainability and growing profits. With nuclear, tech companies access a cost-effective power source with real sustainability credentials. “The recent announcements by Google and Amazon demonstrate a willingness to finance the development and deployment of advanced reactors for their own energy requirements and climate targets, at a scale that could rapidly drive down capital costs for future new builds and advance the clean energy transition nationwide,” according to the Atlantic Council. For more news, information, and analysis, visit the ETF Building Blocks Channel.

More Commentary

Active ETFs Offer Tax Perks, Too
BY | ETF Database
11/21/2024 | 75 VIEWS
Sell on the Pop Prospects: November 20 Edition
BY | ETF Database
11/20/2024 | 36 VIEWS
The Case for Active Investing in 2025
BY | ETF Database
11/20/2024 | 70 VIEWS
View more Commentary

Search Commentary

Enter Keyword(s)
Filter Results

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.

Copyright 1998–2024 FMR LLC. 
All rights reserved.