Following President Obama’s Energy Plans With Nuclear Energy ETFs

nuclear1“It has been 30 years since the United States built a nuclear power plant, but now President Obama has proposed government loan guarantees for two new nuclear reactors proposed to be built in Georgia by Atlanta-based Southern Company (NYSE: SO). They would be the first plants licensed to be built since the Three Mile Island reactor accident in 1979. That scary experience, subsequently exceeded by the meltdown in Chernobyl, Ukraine, created the NIMBY (not in my back yard) response to any proposed new reactors. There are 104 nuclear reactors operational in the United States, which produce about 20% of our electricity. Meanwhile, China has 11 nuclear reactors operating and 13 new reactors under construction. And France gets 77% of its electricity from nuclear power,” Terry Savage Reports From The Money Show.

Savage goes on to say, “It appears the United States is about to follow their lead. In his speech on February 17th, the president said that nuclear power was necessary because it will provide a source of “clean” energy—and will help free America from dependence on imported oil. That’s all true. But you can’t build a nuclear reactor without uranium—and America had better start thinking twice about where we’re going to get that precious natural resource. The US has only 6% of the worlds known recoverable resources of uranium. And you guessed right if you realize that a quarter of the world’s uranium is from Russia and Kazakhstan. Another 25% of the world’s uranium ore is in Australia—where the Chinese have been busy buying up some of the largest uranium mining companies.”

“Uranium has had a long history of booms and busts. Back in the 1950s, when nuclear weapons and the potential of nuclear power came to public attention, the idea of buying uranium stocks was synonymous with scams. Small mining companies, headquartered mostly in Utah, started selling worthless shares in nonexistent mines. Today, with nuclear power coming back into fashion, there are far more legitimate ways for investors and speculators to invest in uranium. Futures are traded on the Nymex, a division of CME Group (Nasdaq: CME), of which I am a corporate director. Or you can purchase shares in two exchange traded funds that concentrate on the nuclear energy industry. The iShares Global Nuclear Energy ETF (Nasdaq: NUCL) and the PowerShares Global Nuclear Energy ETF (NYSEArca: PKN) are not pure uranium investments. They each have about half of their investments in the power generating companies that are in this industry. And there are individual stocks of legitimate mining companies that produce uranium ore,” Savage Reports.

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Here are some more details on the iShares Global Nuclear Energy ETF (NUCL) and the PowerShares Global Nuclear Energy ETF (PKN) below:

The investment (NUCL) seeks results that correspond generally to the price and yield performance, before fees and expenses, of S&P Global Nuclear Energy index. The fund generally invests at least 90% of assets in securities of the underlying index and depositary receipts representing securities of the underlying index. It may invest the remainder of assets in securities not included in underlying index but which believed will help the fund track the underlying index. The fund is nondiversified. 

TOP HOLDINGS

Symbol Name % Net
Assets
Market
Value ($)
Identifier* Market Sector Exchange
Rate
(CCO) CAMECO CORP 8.68 $1,296,140 XTSE Oil Gas & Consumable Fuels 1.05
(MDR) MCDERMOTT INTL INC 8.16 $1,217,966 XNYS Industrial Conglomerates 1.00
(EOAN) E.ON AG 7.62 $1,137,343 XETR Electric Utilities 0.74
(IBE) IBERDROLA SA 7.48 $1,117,552 XMCE Electric Utilities 0.74
(SHAW) SHAW GROUP INC 6.16 $920,032 XNYS Construction & Engineering 1.00
(CEI) AREVA – CI 5.83 $870,176 XPAR Electrical Equipment 0.74
(9501) TOKYO ELECTRIC POWER CO INC 5.69 $849,418 XTKS Electric Utilities 91.98
(9503) KANSAI ELECTRIC POWER CO INC 5.39 $804,141 XTKS Electric Utilities 91.98
(1963) JGC CORP 4.60 $686,590 XTKS Construction & Engineering 91.98
(PDN) PALADIN ENERGY LIMITED 4.43 $660,985 XASX Oil Gas & Consumable Fuels 1.12
(FPL) FPL GROUP INC 4.42 $660,024 XNYS Electric Utilities 1.00
(EXC) EXELON CORP 4.37 $653,184 XNYS Electric Utilities 1.00
(EDF) ELECTRICITE DE FRANCE 3.54 $528,558 XPAR Electric Utilities 0.74
(ETR) ENTERGY CORP 3.47 $517,702 XNYS Electric Utilities 1.00
(FE) FIRSTENERGY CORP 3.05 $454,843 XNYS Electric Utilities 1.00
(FUM1V) FORTUM OYJ 2.68 $400,014 XHEL Electric Utilities 0.74
(UUU) URANIUM ONE INC 2.55 $380,657 XTSE Oil Gas & Consumable Fuels 1.05
(ERA) ENERGY RESOURCES OF AUST 2.20 $329,212 XASX Oil Gas & Consumable Fuels 1.12
(KEP) KOREA ELEC POWER CORP-SP ADR 2.10 $314,263 XNYS Electric Utilities 1.00
(CEG) CONSTELLATION ENERGY GROUP 1.84 $275,291 XNYS Independent Power Producers & Energy Traders 1.00
(EXT) EXTRACT RESOURCES LTD 1.81 $270,689 XASX Oil Gas & Consumable Fuels 1.12
(U) URANIUM PARTICIPATION CORP 1.75 $261,294 XTSE Capital Markets 1.05
(USU) USEC INC 1.30 $193,529 XNYS Oil Gas & Consumable Fuels 1.00
(ES) ENERGYSOLUTIONS INC 0.62 $92,177 XNYS Commercial Services & Supplies 1.00
BLACKROCK FDS III 0.04 $5,338 S-T Securities 1.00
 
The investment (PKN) seeks results that correspond (before fees and expenses) generally to the price and yield performance of the index called the WNA Nuclear Energy IndexSM (the “Underlying index”). The fund normally invests at least 90% of its total assets in stocks and American depository receipts (“ADRs”) based on the securities that comprise the Underlying index. It normally invests at least 80% of total assets in the nuclear energy industry. The fund is nondiversified.

TOP 10 HOLDINGS ( 35.95% OF TOTAL ASSETS)  
 
Company Symbol % Assets
AREVA (CEI.PA) 7.42
Cameco Corp. (CCJ) 3.05
Doosan Heavy Industries & Construction Co Ltd N/A 3.11
E.ON N (EOAN.BE) 2.99
Emerson Electric Co. (EMR) 2.94
EQUINOX MINERALS COM NPV (EQN.TO) 2.92
PALADIN FPO (PDN.AX) 2.96
Shaw Group Inc. (SHAW) 2.9
Thermo Fisher Scientific Inc (TMO) 2.83
Toshiba Corporation N/A 4.83

Chart for iShares S&P Global Nuclear Energy Index (NUCL)

 

 

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