A Policy Shift That Favors Energy Security: Why Nuclear Power and LNG Stand to Benefit

Recent discussions surrounding the potential cancellation of loans issued under the U.S. Department of Energy’s $400 billion clean-energy program have sparked widespread debate. While some view this as a setback for renewable energy projects, a more strategic perspective reveals a compelling opportunity for nuclear power and liquefied natural gas (LNG) to take center stage.

If these clean-energy loan programs are scaled back or eliminated, the U.S. energy landscape will need to refocus on reliable, scalable, and economically viable energy sources. Nuclear power and LNG, both proven solutions with long-term growth potential, stand to benefit as investment priorities shift toward stability, energy security, and market-driven solutions [1].

The Case for Nuclear Power

Nuclear energy remains one of the most efficient, reliable, and carbon-free sources of baseload power. Unlike wind and solar, which require significant subsidies and infrastructure investment to scale effectively, nuclear power plants provide consistent energy output regardless of weather conditions.

With a policy shift away from clean-energy subsidies, nuclear could become a preferred alternative as policymakers and investors seek practical solutions that align with both environmental and economic priorities. Advanced nuclear technologies, such as small modular reactors (SMRs), further enhance the sector’s appeal by offering scalable and cost-effective alternatives to traditional reactors.

As clean-energy funding becomes uncertain, nuclear’s role in the energy mix may become even more critical. Without government-backed incentives for intermittent renewables, energy markets will likely place a greater emphasis on reliable sources, putting nuclear in a stronger position for growth.

LNG: A Bridge to Energy Security

LNG has already established itself as a key player in the global energy transition, serving as a lower-carbon alternative to coal while ensuring grid stability. The geopolitical landscape has underscored the importance of U.S. LNG exports, particularly in supplying European and Asian markets seeking to diversify away from Russian energy dependence.

If federal support for clean energy is reduced, LNG’s value proposition strengthens further. Natural gas-fired power plants provide flexible, on-demand energy that complements renewable generation, filling in supply gaps when wind and solar output fluctuates. Additionally, continued investment in LNG infrastructure, including export terminals, pipelines, and processing facilities, will further strengthen the U.S. position as a dominant player in global energy markets.

Market-Driven Growth and Investment Potential

A rollback of clean-energy loans doesn’t signal the end of the energy transition; rather, it reorients investment strategies toward sustainable, market-driven solutions. Nuclear power and LNG, both of which have strong commercial foundations, are poised to attract increased capital allocation as investors seek opportunities backed by real demand rather than government incentives.

This shift presents a unique investment window. Companies engaged in nuclear innovation, uranium mining, LNG export infrastructure, and natural gas development could see accelerated growth as the market adapts to new energy dynamics. With global energy demand continuing to rise, these sectors offer strong fundamentals for long-term investment.

For investors and industry leaders, now may be the time to focus on these high-potential areas—where innovation, demand, and geopolitical necessity align to create long-term value.
 

Consider exploring Range's ETFs to strengthen your position in the evolving energy sector.

The Range Nuclear Renaissance Index ETF

The Range Nuclear Renaissance Index ETF (NUKZ) is designed to provide exposure to companies that are involved in the following segments: Advanced Reactor, Utilities, Construction & Services, and Fuel.

The Range Global LNG Ecosystem Index ETF

The Range Global LNG Ecosystem Index ETF (LNGZ) aims to provide investors with exposure to companies that are involved in the Liquefied Natural Gas (“LNG”) ecosystem. Companies classified as an “LNG Ecosystem” are likely engaged in one of the following areas: production, exploration, development, transportation, and distribution.

For a full list of NUKZ holdings, please click here.
For a full list of LNGZ holdings, please click here.
Holdings subject to change.

[1] All data sourced from: "Trump Mulls Cancelling Loans Issued From $400 Billion Clean-Energy Program." Bloomberg, February 4, 2025, www.bloomberg.com. Accessed 2/5/2025

Risk Disclosures:

Carefully consider the Fund's investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund's full or summary prospectus, which may be obtained by visiting www.rangeetfs.com/investor-materials. Read it carefully before investing or sending money.

Investing involves risk, including possible loss of principal. There is no guarantee the Funds will achieve their stated investment objectives.

Investments in the energy industry are subject to significant volatility due to changes in commodity prices. Additional risks include changes in exchange rates, government regulation, world events, economic and political conditions in the countries where energy companies are located or do business, and risks for environmental damage claims.

The Funds are non-diversified. Their concentration in an industry or sector can increase the impact of, and potential losses associated with, the risks from investing in those industries/sectors.

International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Investments in smaller companies typically exhibit higher volatility.

The Funds may invest in securities denominated in foreign currencies. Because the Funds' NAV is determined in U.S. dollars, the Funds' NAV could decline if currencies of the underlying securities depreciate against the U.S. dollar or if there are delays or limits on repatriation of such currencies. Currency exchange rates can be very volatile and can change quickly and unpredictably.

Because the Funds are new, investors in the Funds bear the risk that the Fund may not be successful in implementing their investment strategy, may not employ a successful investment strategy, or may fail to attract sufficient assets under management to realize economies of scale, any of which could result in the Funds being liquidated at any time without shareholder approval and at a time that may not be favorable for all shareholders. Such liquidation could have negative tax consequences for shareholders and will cause shareholders to incur expenses of liquidation.

The Funds are a recently organized investment company with no operating history. As a result, prospective investors have no track record or history on which to base their investment decision. Moreover, investors will not be able to evaluate the Funds against one or more comparable funds on the basis of relative performance until the Funds has established a track record.

Exchange Traded Concepts, LLC serves as the investment advisor of the funds. NUKZ, LNGZ, COAL, and OFOS ETFs are distributed by SEI Investments Distribution Co. (SIDCO, 1 Freedom Valley Drive, Oaks, PA 19456), which is not affiliated with Exchange Traded Concepts, LLC, or any of its affiliates.