America's Bold Plan to Triple Nuclear Capacity

As global energy demand rises and the urgency to combat climate change intensifies, the U.S. is launching its most ambitious nuclear power plan in decades. A recent proposal to triple the country’s nuclear capacity represents a major step forward, and it couldn’t come at a more critical time.

The Biden administration's strategy focuses on significantly expanding nuclear power infrastructure to support the soaring energy needs of the future. Driven by the explosive growth of data centers, electric vehicles, and other high-energy demands, this initiative aims to secure a steady supply of carbon-free electricity for years to come. But why now, and what makes nuclear the cornerstone of this transition? [1]

Nuclear’s Return to the Spotlight

Despite being one of the most reliable sources of clean energy, nuclear power has long been sidelined due to public apprehension and high operational costs. However, with renewable sources like wind and solar grappling with intermittency challenges, nuclear's consistency is drawing renewed attention. As the U.S. looks to meet its carbon reduction goals, nuclear power's stable output provides a dependable alternative that can keep pace with modern demands.

The U.S. Department of Energy (DOE) recently revealed plans to revive and expand existing plants while also promoting advanced nuclear technologies, including small modular reactors (SMRs). Unlike traditional reactors, SMRs offer scalability, enhanced safety features, and shorter construction timelines, making them an attractive option for regions with high energy needs but limited space.

From Concept to Concrete

Bringing these plans to fruition requires an intricate balance of government support, private investment, and technological innovation. Key players in the energy sector are already positioning themselves to support this shift, with major corporations eyeing partnerships to secure nuclear-generated power for their expansive operations.

Microsoft’s recent partnership with Constellation Energy to source power from the revived Three Mile Island plant is a prime example of this trend. By committing to nuclear power for its AI-driven data centers, Microsoft is making a statement that other companies may soon follow. The private sector's increasing confidence in nuclear energy is not only reshaping corporate sustainability strategies but also sending a powerful signal to investors.

Global Momentum

The U.S. is not alone in this nuclear revival. Countries around the world, including China, France, and the U.K., are ramping up nuclear initiatives to ensure energy security and meet environmental targets. At the recent COP29 summit, leaders highlighted the importance of nuclear power in achieving global carbon neutrality by 2050, potentially sparking investor interest in nuclear stocks and related ETFs.

How May Investors Gain Exposure to Companies in the Nuclear Energy Sector?

The Range Nuclear Renaissance Index ETF

The Range Nuclear Renaissance Index ETF (NUKZ) seeks to track the performance, before fees and expenses, of the Range Nuclear Renaissance Index. The index aims to track the performance of a portfolio of stocks that are involved in the nuclear fuel and energy industry.

*Please note: Constellation Energy is a 7.57% position in NUKZ as of 11/12/2024

[1] Unless otherwise noted, all data sourced from: Bloomberg News. "U.S. Has Plan to Triple Nuclear Power as Energy Demand Soars." Bloomberg, 12 Nov. 2024, https://www.bloomberg.com/news/articles/2024-11-12/cop29-us-has-plan-to-triple-nuclear-power-as-energy-demand-soars.

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/nukz. 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 Fund is non-diversified. Its concentration in an industry or sector can increase the impact of, and potential losses associated with, the risks from investing in those industries/sectors.

Nuclear companies may be subject to substantial government regulation and contractual fixed pricing, which may increase the cost of doing business and limit the earnings of these companies. A significant portion of revenues of nuclear companies depends on a relatively small number of customers, including governmental entities and utilities. As a result, governmental budget constraints may have a material adverse effect on the stock prices of companies in this sub-industry.

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 Fund may invest in securities denominated in foreign currencies. Because the Fund's NAV is determined in U.S. dollars, the Fund's 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 Fund is new, investors in the Fund bear the risk that the Fund may not be successful in implementing its 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 Fund 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 Fund is 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 Fund 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.