Playing The Nuclear ETF (NLR) As Over 200 New Nuclear Plants Are In The Works

“We continue to talk about a Commodity Surge in the uranium industry, which is sure to explode in the years ahead, based on the over 200 new nuclear plants in various stages of planning or construction around the world. The Market Vectors Nuclear Energy ETF (NYSE:NLR) is a great way to play uranium, and it has other benefits as well,” Ellen Stevens Reports From Commodity Surge.

Stevens goes on to say, “For example, the nuclear ETF (NLR) is also a way to participate in emerging markets, as the vast majority of the nuclear plants will be built in those countries. Even with attempts to increase production, the uranium mines in the world won’t be able to supply the growing demand for uranium any time soon, and that ensures prices will eventually start to rise again as a consequence.”

“In the middle of 2007 uranium spot prices had reached as high as $136 a pound, but plunged along with everything else during the height of the economic crisis, to about $45 a pound today. I don’t see a much simpler and better way to invest in uranium unless you absolutely have the time to delve into every part of the industry. The other great thing is the low fees of an ETF and not having to deal with the prospect of trading in foreign markets. This applies to Market Vectors Nuclear Energy ETF (NLR) because most of its holdings are tracked on foreign exchanges,” Stevens Reports.

Nuclear Power is here to stay and with over 200 Nuclear Plants underway the price of Uranium will find itself higher in the long term.  The Market Vectors Nuclear Energy ETF (NLR) is a great way to diversify into the space and should find a place in your portfolio.

We have put together a snapshot of the ETF below:

The investment ETF (NLR) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the DAXglobal Nuclear Energy index. The fund normally invests at least 80% of total assets in equity securities of U.S. and foreign companies primarily engaged in the nuclear energy business, which derive at least 50% of their total revenues from nuclear energy business. Such companies may include small- and medium capitalization companies. It is nondiversified.

Fund Holdings as of 3/30/2010
Number Holding Ticker Shares Market Value % of net assets
1 EDF (EDF) FP 280,909 $15,392,528.64 8.14%
2 Energy Resources of Australia Ltd (ERA) AU 868,913 $15,161,146.69 8.01%
3 Cameco Corp (CCJ) US 524,788 $14,405,430.60 7.63%
4 Constellation Energy Group Inc (CEG) US 401,887 $14,291,101.72 7.61%
5 Exelon Corp (EXC) US 327,378 $14,391,536.88 7.61%
6 USEC Inc (USU) US 1,606,571 $9,269,914.67 4.90%
7 Mitsubishi Heavy Industries Ltd (7011) JP 2,151,606 $9,038,408.46 4.80%
8 Fronteer Development Group Inc (FRG) CN 1,726,194 $8,959,543.03 4.74%
9 Paladin Energy Ltd (PDN) AU 2,430,685 $8,941,563.07 4.73%
10 Denison Mines Corp (DML) CN 5,927,012 $8,664,882.14 4.58%
11 Areva SA (CEI) FP 16,299 $8,421,298.74 4.45%
12 Uranium One Inc (UUU) CN 3,037,856 $8,345,758.24 4.41%
13 Uranium Participation Corp (U) CN 1,426,868 $8,287,930.30 4.38%
14 Taihei Dengyo Kaisha Ltd (1968) JP 860,776 $7,886,268.68 4.24%
15 JGC Corp (1963) JP 386,674 $6,891,790.69 3.69%
16 Forsys Metals Corp (FSY) CN 1,565,377 $6,588,959.31 3.48%
17 Us Ecology Inc (ECOL) US 362,844 $5,921,614.08 3.13%
18 First Uranium Corp (FIU) CN 3,304,127 $4,311,704.19 2.28%
19 IHI Corp (7013) JP 2,189,414 $4,032,017.85 2.16%
20 Hathor Exploration Ltd (HAT) CN 1,996,858 $3,898,888.76 2.06%
21 Kajima Corp (1812) JP 1,579,805 $3,811,747.58 2.04%
22 Toshiba Plant Systems & Services Corp (1983) JP 144,900 $1,644,902.29 0.88%
23 Cash   318,527 $318,530.71 0.17%

Chart for Market Vectors Nuclear Energy ETF (NLR)

Leave a Reply

Your email address will not be published. Required fields are marked *