The nuclear energy sector offers multiple investment approaches, each with distinct philosophies and risk profiles. Understanding how we believe the Range Nuclear Renaissance Index ETF (NUKZ) differentiates itself from other nuclear-focused products can help investors make informed allocation decisions.
Two Sides of the Nuclear Investment Thesis
Range Fund Holdings’ Founder and CEO Tim Rotolo’s's experience developing the uranium mining index URNMX in 2019 provided crucial insights that shaped the design of NUKZ's underlying index. As he explained in our recent webinar:
"URNMX was really about there being a supply deficit and about providing supply of uranium. This was about the demand growth and that rising tide that's going to lift the entire sector."
This distinction is fundamental:
Supply-focused products emphasize uranium mining and production, betting on commodity price appreciation driven by supply constraints.
Demand-focused products emphasize the broader buildout of nuclear infrastructure, betting on growth across utilities, construction, services, and advanced technology as nuclear capacity expands globally.
NUKZ deliberately positions itself in the second category, seeking to capture the nuclear renaissance from a demand perspective rather than a commodity supply angle.
The Mining Company Challenge
One of NUKZ most distinctive features is its limited exposure to pure uranium mining operations. Mr. Rotolo addressed this explicitly:
"A lot of investors don't, as a policy, want exposure to mining companies. They can be very challenging companies to own long term because mining is a very challenging business."
The NUKZ investment methodology caps fuel exposure at 20% and focuses within that allocation on enrichment and conversion rather than mining. The one exception is Cameco, included not just as a miner but as an integrated operator that owns Westinghouse and has conversion and storage capabilities.
This approach acknowledges a reality: "This is such a long-term theme that is pivotal to global economic growth. There will certainly be pockets of volatility, but I really think it's one of the most important long-term themes out there."
Mining companies, while potentially profitable, introduce commodity volatility that may not align with investors seeking long-term nuclear growth exposure.
Four Pillars of Nuclear Demand
NUKZ's index methodology divides the nuclear industry into four distinct categories, each capped to help ensure diversified exposure:
Construction & Services (Capped at 35%)
This largest category captures the industrial backbone needed to build, maintain, and expand nuclear capacity. Companies like Quanta Services, Lockheed Martin, and Curtiss-Wright provide essential services and equipment. Many are diversified industrials for which nuclear represents an increasingly important growth segment.
Advanced Reactors (Capped at 30%)
This includes companies developing small modular reactors (SMRs), micro reactors, and next-generation nuclear technology. Holdings like Oklo represent the cutting-edge innovation driving new applications for nuclear power.
Utilities (Capped at 30%)
Nuclear utilities appears to have transformed from stable, low-growth dividend stocks into potential high-growth companies securing long-term power purchase agreements with tech giants. Constellation Energy's deal with Microsoft for Three Mile Island restart exemplifies this shift.
Fuel (Capped at 20%)
Rather than pure uranium miners, this category emphasizes enrichment and conversion. Companies like Silex Systems (working on laser enrichment technology)) and Alpha Isotopes represent the fuel cycle's higher-value segments.
Quality Over Volatility
Mr. Rotolo emphasized his opinion that the NUKZ's ETF delivers "higher quality companies with more robust earning streams, which we think is attractive over the long term just as a fundamental investor."
By capping mining exposure and emphasizing construction, services, and utilities, NUKZ may offer:
- Lower volatility than concentrated investments in uranium companies
- More stable cash flows from established industrial companies
- Diversified revenue streams across the nuclear value chain
- Reduced commodity risk while maintaining nuclear growth exposure
As Mr. Rotolo noted, "The returns tend to be less volatile than investing in uranium stocks or other securities providing concentrated exposure to uranium companies," making NUKZ potentially more suitable for investors seeking nuclear exposure within a balanced portfolio.
Global Scope with U.S. Tilt
While NUKZ has a U.S. tilt (69.47% as of September 30, 2025)¹, it maintains meaningful international exposure:
- South Korea (7.17%)
- Japan (6.86%)
- United Kingdom (2.98%)
- Australia (2.64%)
- Multiple European countries
This global approach recognizes that the nuclear renaissance is truly worldwide. As Mr. Rotolo explained, "This is not a US-centric thing. This is really global."
The ETF structure particularly benefits investors seeking this international exposure: "Some of the companies that are listed trade on smaller exchanges, which individual investors may find inefficient to purchase directly."
Built for a Comprehensive Renaissance
Perhaps NUKZ's most important differentiator is its recognition that the nuclear renaissance won't be driven by a single factor. Mr. Rotolo's investment thesis is straightforward:
"We tried to develop this index that would provide a cross section of the entirety of this growth industry, not just uranium, not just SMRs, not just the utilities, because the longer term view is this is kind of an all the above theme."
This philosophy acknowledges multiple paths to nuclear growth:
- Reactor Restarts: Palisades in Michigan, Three Mile Island in Pennsylvania, Duane Arnold in Iowa
- Life Extensions: Existing plants operating for 60, 80, even 100 years
- Uprates: Retrofitting reactors to generate more power from existing capacity
- New Large Reactors: Brookfield's AP1000 projects, international builds
- SMRs and Micro Reactors: Eventually deployed as technology matures
- Industrial Applications: Dedicated power for steel, chemicals, and manufacturing
Each of these pathways requires different expertise, and NUKZ's diversified approach seeks to capture all of them.
Performance Considerations
Since inception in January 2024, NUKZ has delivered strong absolute returns (75.71% NAV return through September 30, 2025)². Mr. Rotolo attributes this to two factors:
- Macro tailwinds: Growing policy support, energy security concerns, and AI power demand
- Company-specific catalysts: "Idiosyncratic, specific name performance" from individual holdings announcing contracts, technology milestones, and partnerships
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the original cost. Performance data for the most recent month-end is available HERE.
The combination of broad thematic exposure with diversified company selection has allowed NUKZ to "perform very well on the downside" while capturing upside from nuclear sector growth.
Who Should Consider NUKZ?
NUKZ may be appropriate for investors who:
- Want nuclear energy exposure without pure commodity speculation
- Seek diversification across the nuclear value chain
- Prefer established companies with current revenue alongside growth stories
- Value lower volatility than some pure mining securities with concentrated uranium positions
- Believe the nuclear renaissance will unfold across multiple pathways
- Want global exposure through a single U.S.-traded security
As Mr. Rotolo candidly acknowledged during the webinar, "We're not smart enough to know which one [segment] is gonna be the best performer, but we do think that people should have exposure to all these different components of the thesis."
The Bottom Line
NUKZ represents a distinct approach to nuclear energy investing: demand-driven rather than supply-focused and inclusive of the entire value chain rather than just one segment.
For investors who believe nuclear power will play an essential role in global decarbonization, energy security, and AI infrastructure but want to avoid the volatility of pure commodity or mining exposure, NUKZ offers a differentiated solution.
The nuclear renaissance is bigger than any single technology or company. NUKZ is designed to capture that comprehensive opportunity as demand for clean, reliable baseload power grows globally over the coming decades.
See www.rangeetfs.com/nukz for a full list of positions. Holdings subject to change.
Cameco, Westinghouse, Quanta Services, Lockheed Martin, Curtiss-Wright, Oklo, Constellation Energy, Microsoft, Silex Systems, Alpha Isotopes, Brookfield, make up 8.28%, 0%, 2.90%, 2.91%, 2.66%, 3.01%, 8.76%, 0%, 3.41%, 0%, 0% respectively of NUKZ as of 11/20/2025
Sources:
[1] Range Nuclear Renaissance Index ETF Fact Sheet, as of September 30, 2025
[2] Range Nuclear Renaissance Index ETF Fact Sheet, as of September 30, 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/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.
Indexes are unmanaged and one cannot invest directly in an index.
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.
