Risk of Nuclear ETF: You may lose money up to the total loss of your investment due to Risk of investing in natural resources companies and Concentration Risk as described in the Main Risk Factors, KID and prospectus.
Nuclear energy is considered is a reliable and low-carbon source of electricity. Unlike fossil fuel energy generation, nuclear power plants do not emit greenhouse gases when operating, unlike fossil fuel-powered plants. Additionally, nuclear energy has a much smaller land footprint compared to renewable sources of electricity such as solar and wind power and is much less resource-intensive.
Support Nuclear Energy with our Nuclear ETF, VanEck Uranium and Nuclear Technologies UCITS ETF.
Despite its obvious pros, many people view it as a risky and costly technology that poses significant environmental and safety risks. To address that, scientists are working on technologies that will be able to harness nuclear power in a more efficient and environmentally-friendly way. Nuclear technologies and industrial companies involved in the VanEck Nuclear ETF could be well-positioned to be the ones at the cutting edge of those technologies.
Since the late 1800s, the Earth's average temperature has risen by about 1 degree, with the past 8 years being the 8 warmest on the record1. This is primarily caused by the burning of fossil fuels, which releases large amounts of carbon dioxide and other greenhouse gases into the atmosphere2.
1 Source: World Meteorological Oranization, 2023.
2 Source: UN.
The warming of the planet is causing a variety of changes in the Earth's climate, including more extreme weather events, rising sea levels, and changes in precipitation patterns. Climate change is also having a significant impact on the world's ecosystems, with many species at risk of extinction due to changes in their habitats.
To avoid the worst effects of climate change, it is necessary to reduce the amount of greenhouse gases being released into the atmosphere by transitioning to low-carbon energy sources. Together with wind and solar, nuclear energy has by far the lowest carbon footprint among conventional sources of energy, >250 times lower than that of coal, and > 160 times lower compared to natural gas2.
2 Source: Our World in Data, 2021.
Nuclear energy can also be beneficial for a country’s energy security. States that rely on uranium for their energy production can reduce their dependence on imported oil and natural gas, which can be subject to price fluctuations and supply disruptions. The Nuclear ETF by VanEck contains companies at the forefront of transition from fossil fuels to nuclear power.
| Holding Name | Shares |
% of Net Assets |
|---|---|---|
| Cameco Corp | 596,001 | 15.33 |
| Bwx Technologies Inc | 156,110 | 9.36 |
| Uranium Energy Corp | 1,709,901 | 6.25 |
| Nexgen Energy Ltd | 1,546,173 | 5.61 |
| Ihi Corp | 184,200 | 4.92 |
| Mitsubishi Heavy Industries Ltd | 683,700 | 4.85 |
| Denison Mines Corp | 4,628,599 | 4.79 |
| Hitachi Ltd | 345,200 | 4.38 |
| Oklo Inc | 381,340 | 4.22 |
| Atkinsrealis Group Inc | 173,664 | 4.11 |
| Top 10 Total (%) | 63.81 | |
The Fund’s assets may be concentrated in one or more particular sectors or industries. The Fund may be subject to the risk that economic, political or other conditions that have a negative effect on the relevant sectors or industries will negatively impact the Fund's performance to a greater extent than if the Fund’s assets were invested in a wider variety of sectors or industries.
Exists when a particular financial instrument is difficult to purchase or sell. If the relevant market is illiquid, it may not be possible to initiate a transaction or liquidate a position at an advantageous or reasonable price, or at all.
Investments in natural resources and natural resources companies, which include companies engaged in alternatives (e.g., water and alternative energy), base and industrial metals, energy and precious metals, are very dependent on the demand for, and supply and price of, natural resources and can be significantly affected by events relating to these industries, including international political and economic developments, embargoes, tariffs, inflation, weather and natural disasters, limits on exploration, often changes in the supply and demand for natural resources and other factors.
