Nuclear energy has been around for decades, but it is only recently that it found a spot in the world energy equation. Nuclear generates more that 11% of the world’s electrical power, which is comparable to the energy produced in 1960 from all sources combined. With that in mind, it seems to be a lucrative opportunity for budding and seasoned investors with different publicly traded nuclear companies catching on.
The power is clean and relatively cheap and environmentalists are advocating for it in order to reduce the world’s dependence on fossil fuel. Then again, there is the issue of safety as it can have high casualties and damages in the case of tragedy. Direct nuclear investment is not possible at the moment, but there are several ways for investing in nuclear energy including stocks, futures, and ETFs.
1. Nuclear Energy Stocks
There are a number of publicly traded nuclear companies that engage in various facets of the nuclear energy industry such as equipment manufacturers, nuclear materials suppliers, and nuclear plants operators. So, if you want to invest in stocks, such companies are viable options for investors who believe nuclear energy has a promising future.
There are no ETFs that provide direct exposure to nuclear energy inputs, but you can find various options that focus on companies that engage in the nuclear industry. Some of these options include iShares SandP Global Nuclear Index Fund (NUCL), PowerShares Global Nuclear Energy Portfolio (PKN) and Market Vectors Uranium + Nuclear ETF (NLR). You can also invest in an option, such as Global X Uranium ETF (URA), that offers exposure to companies that produce uranium.
If you want to make nuclear energy investment using features, then the most popular and viable option are the exchange-traded Uranium swap futures. In volatile markets, you can be sure to access straightforward forward price mechanism and it is compatible with the hedging technique. However, it is important to note that exposure can be limited because it is usually thinly-traded.
Whatever your option, it is essential to find viable and competitive publicly traded nuclear companies to invest in. Keeping tabs on various companies allows you to stay abreast of the industry’s news, trends and development. Consequently, you are able to make informed and sound decisions that impact your efforts positively. You can decide what option suits you or you can work with other investors to make collective investments.