While the renewable energy picture has darkened with the Trump administration’s shift in policy priorities, electricity demand has done the opposite. AI-driven data center usage and construction is perhaps the key market narrative right now, representing a huge swathe of the year’s economic activity. All of that data center activity requires huge new amounts of electricity, but with most renewables slowing down, nuclear energy stocks could be poised to benefit. That presents a notable opportunity in the nuclear energy ETF NUKZ.

See more: Data Centers Embracing Nuclear, SMRs for AI Needs

The Range Nuclear Renaissance Index ETF (NUKZ) operates in the exciting but small category of nuclear energy ETFs. The fund tracks the Range Nuclear Renaissance Index. In doing so, the strategy has returned 76.3% over the last one year period, per ETF Database data. That has outperformed ETF Database’s other two listed nuclear energy ETFs in that time frame.

Nuclear Stocks in NUKZ

That index looks to provide exposure to a diverse group of nuclear energy stocks, including utilities, advanced reactors, construction & services, and fuel. That broad range of companies enables NUKZ to get exposure to innovation and traditionally more stable utilities-type investments. Which firms therein have contributed the most to the ETF’s performance, then?

Constellation Energy Corporation (CEG), as the ETF’s largest holding, has played a big part. CEG, which generates electricity from renewable sources, operates the largest fleet of nuclear plants in the country. According to YCharts data, CEG has returned 60.8% YTD, with 23% return on equity.

Quanta Services (PWR) occupies an infrastructure role in the fund, meanwhile, returning 33% YTD. PWR has particularly strong exposure to AI trends, as a key contributor to the infrastructure needed for the AI revolution. Its workers include specialists operating switchyards and electrical transmission infrastructure for nuclear plants.

NUKZ offers exposure to companies, like those, that are either directly or indirectly tied to nuclear energy production. With electricity demand ramping up massively, investors may want to consider how a nuclear energy stocks ETF like NUKZ could represent a shrewd addition to an equities allocation. 

vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for NUKZ ETF, for which it receives an index licensing fee. However, NUKZ ETF is not issued, sponsored, endorsed, or sold by VettaFi. VettaFi and its affiliates have no obligation or liability in connection with the issuance, administration, marketing, or trading of NUKZ ETF.

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