The Dawn of a Global Nuclear Renaissance

A Critical turning Point

The energy landscape is evolving rapidly, and nuclear power is taking center stage as a key player in addressing global energy demands. According to a comprehensive Goldman Sachs report on data center power and clean energy trends, the early stages of a nuclear renaissance are evident both in the United States and worldwide. This resurgence is driven by increasing energy consumption and the urgent need for sustainable, low-carbon solutions​. [1]

A Shift Toward Nuclear Power

Nuclear power, long overshadowed by public skepticism and operational costs, is regaining momentum due to its unmatched reliability and low-carbon footprint. As intermittent renewable sources like wind and solar face challenges in consistently meeting energy demands, nuclear energy offers a dependable alternative. The report highlights how recent contracts for small modular reactors (SMRs) and larger-scale nuclear facilities are catalyzing investments that will expand nuclear's role in the energy mix over the next decade.

Meeting the Needs of the Digital Economy

The rapid expansion of data centers, driven by the accelerating demand for artificial intelligence (AI) and cloud computing, has triggered unprecedented growth in global power consumption. Estimates indicate that data center energy usage will grow by 165% between 2023 and 2030. AI training, in particular, is a significant driver of this surge, placing immense pressure on existing power grids.

To address this challenge, nuclear energy is emerging as a key solution, offering reliable, low-carbon, 24/7 power. Its ability to operate at a 90% capacity factor far exceeds the intermittency issues associated with renewable sources like wind and solar. Small modular reactors (SMRs) are gaining attention for their scalability and flexibility, with designs catering specifically to localized energy needs. Recent corporate commitments to SMRs, such as partnerships between major technology firms and nuclear developers, highlight a growing trend toward integrating nuclear energy into data center operations.

The energy-intensive nature of AI has also led technology giants to explore diverse strategies, including contracts for nuclear energy, solar and wind power augmented with battery storage, and carbon capture initiatives. These efforts underscore the commitment of hyperscalers and other data center operators to transitioning toward low-carbon power solutions. However, balancing energy reliability, cost-effectiveness, and sustainability remains a critical focus as data centers scale up globally.

The Global Nuclear Momentum

The resurgence of nuclear energy is gaining traction globally. Switzerland is actively reconsidering nuclear energy as a long-term solution, while China continues to expand its nuclear infrastructure at an accelerated pace, reflecting its commitment to energy security. International efforts, such as the COP28 agreement to triple global nuclear capacity by 2050, demonstrate a growing consensus among nations on the critical role of nuclear power. These actions highlight a shared understanding of the importance of nuclear energy in achieving both energy independence and global decarbonization goals.

As the nuclear renaissance accelerates, companies across the nuclear supply chain may be positioned to thrive, capitalizing on surging demand and driving innovation in the transition to a low-carbon energy future.

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.

[1] Unless otherwise noted, all data sourced from: Goldman Sachs. AI/Data Centers’ Global Power Surge. Goldman Sachs Group, Inc., 3 Nov. 2024.

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.

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