As President Trump prepares for his second term, energy policy is taking center stage once again under the banner of "America First." The focus has shifted to the concept of "baseload" power, aiming to ensure energy reliability and independence in the face of unprecedented load growth and evolving grid dynamics. This rebranded strategy reflects the realities of today’s energy landscape, balancing traditional and clean energy sources to meet surging demand.
America First in the Age of Record Energy Demand
When President Trump first took office in 2017, the energy sector was defined by stagnant demand and a grid dominated by traditional power sources. Today, the landscape has changed dramatically. U.S. power demand is at record highs, fueled by the rapid expansion of artificial intelligence, domestic manufacturing, and electrification. Renewable energy has surged, contributing a larger share to the energy mix than ever before, yet creating new challenges for grid reliability due to its intermittent nature. [1]
The Trump administration's energy team, led by nominees Doug Burgum for Interior Secretary and Chris Wright for Energy Secretary, has embraced "baseload" as the new watchword for addressing these challenges. During recent Senate hearings, both nominees stressed the critical role of firm power sources, (coal, natural gas, and nuclear energy), in stabilizing the grid and supporting the nation’s growing industries. Burgum highlighted that 95% of the current energy interconnection queue consists of intermittent sources like solar and wind, underscoring the importance of maintaining a balance between renewable and baseload power.
Bridging the Gap Between Climate Goals and Energy Needs
Unlike Trump’s first term, the current strategy acknowledges the role of fossil fuels in climate change while emphasizing pragmatic solutions. Both Burgum and Wright advocate for carbon capture technologies to mitigate emissions from traditional power sources, rather than outright abandoning fossil fuels. Their vision seeks to pair renewable energy with baseload power to ensure the grid can meet growing demands without sacrificing reliability.
Clean firm power sources such as nuclear and geothermal have emerged as pivotal components of this strategy. Nuclear energy, in particular, has gained renewed attention due to its potential to provide consistent, carbon-free power. Wright, a board member of the advanced nuclear startup Oklo, has championed revitalizing domestic uranium enrichment and plutonium pit production, tying these efforts to both energy security and national security. Meanwhile, geothermal energy, an abundant resource, is being reimagined through next-generation infrastructure, making it accessible in more locations.
Challenges and Opportunities in Clean Energy Development
Despite their enthusiasm for nuclear and geothermal energy, both nominees expressed skepticism about the near-term scalability of lithium-ion battery storage. While battery technology continues to improve, they argue that its current capabilities are insufficient to fully address the intermittency of renewables. Instead, they advocate for federal support in advancing clean firm power sources, which are still in the early stages of commercialization compared to solar and wind.
This push for baseload power has sparked some concerns among policymakers and environmentalists. Critics argue that the focus on traditional energy could undermine progress in renewable energy adoption. However, Burgum and Wright contend that a balanced approach is essential for the nation to compete in the global "AI arms race" and to sustain economic growth.
A Balanced Energy Future?
As the Trump administration sets the stage for its second term, its energy policy reflects a nuanced shift. By emphasizing baseload power and clean firm technologies, the administration aims to create a resilient and reliable energy grid capable of meeting the demands of a rapidly evolving economy. While the approach has drawn some skepticism, it signals a commitment to blending traditional energy reliability with emerging clean energy innovation.
The question remains: Can the United States achieve energy independence and grid stability while addressing climate change and fostering innovation? The answer will shape not only the energy sector but also the nation’s position in the global economy for decades to come.
Explore Range’s ETFs as you consider your position in the energy sector.
The Range Global Coal Index ETF
The Range Global Coal Index ETF (COAL) seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Range Global Coal Index. The Index aims to track the performance of a portfolio of stocks that are involved in the metallurgical and thermal coal industry.
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.
The Range Global Offshore Oil Services Index ETF
The Range Global Offshore Oil Services Index ETF (OFOS) is designed to provide exposure to companies that are involved in the offshore oil services ecosystem. Companies classified as “Offshore Oil Services” are likely engaged in one of the following areas: production, exploration, development, transportation, and distribution.
*Note Oklo currently is a 9.92% position in NUKZ as of 1/17/25.
Find a full list of NUKZ holdings here
[1] All data sourced from: Allsup, Maeve, and Lisa Martine Jenkins. "'Baseload' is Trump 2.0's Energy Watch Word." Latitude Media, 20 Jan. 2025, https://www.latitudemedia.com/news/baseload-is-trump-2-0s-energy-watch-word/.
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.
