Range ETFs: Invest in the “Iron Law of Electricity”

Energy security and nationalism reign supreme. Despite the allure of alternative sources, electricity generated by fossil fuels remains a steadfast necessity. Robert Bryce encapsulates this sentiment with what he calls the "iron law of electricity."[1] This principle underscores that people, businesses, and governments will invariably do whatever is necessary to secure the electricity they need.

In this new age of energy security, where stability and reliability are paramount, Range's Energy ETFs — NUKZ, COAL, LNGZ, and OFOS look to capitalize on this reality.

At Range Fund Holdings, we understand the nuances of this energy landscape. Our Range ETFs aim to provide investors with a strategic entry point into this burgeoning sector, offering diversified exposure and potential for growth.

In our previous blog, we discussed why nuclear and fossil fuels will likely remain the stalwarts of the global energy systems.

These factors included:

• The intermittent nature of renewable energy
• Insufficient storage
• Supply chain issues
• Geographic constraints
• Overall increased energy demand exceeding renewable energy supply
• Lack of sufficient grid infrastructure

Fossil fuel and nuclear energy will likely be needed to supplement renewable energy technologies.

Range Funds’ Energy ETFs

Our Range Energy ETFs aim to provide investors with an efficient vehicle to gain exposure to the fossil fuel and nuclear energy resources that will likely be necessary to ensure an adequate supply of clean energy.

Range's Energy ETFs provide exposure to the following four energy resources:

• Nuclear Energy
• Coal
• Liquified Natural Gas (LNG)
• Offshore Oil Services

Range Nuclear Renaissance Index ETF

The Range Nuclear Renaissance Index ETF (NUKZ) aims to provide exposure to companies in the nuclear fuel and energy industry.

• Nuclear Power is Safe, Clean and Efficient: Nuclear power produces no greenhouse gas emissions during operation and produces lifetime emissions equivalent to those of wind and one-third of compared to solar.[2]
• Renewed Interest in Nuclear Power Globally May Drive Demand: Governmental policy is becoming more amenable to nuclear energy.[3]
• Nuclear Technology is Advancing: Newer technologies, like small modular reactors (SMRs), are making nuclear energy more affordable, efficient, and safer, enhancing their potential appeal as stable sources of clean energy.

Range Global Coal Index ETF

The Range Global Coal Index ETF (COAL) aims to provide exposure to companies in the met and thermal coal industry.

• Demand Remains Robust: According to the IEA, global coal demand is set to remain at all-time highs in 2024 driven in large part by India and China.[4]
• Access to Capital Has Been Reduced: Over 200 global institutions have restrictions barring investment in coal despite its role in power generation and steel production.[5]
• Coal Mining Companies Have Become More Financially Disciplined: As capital for the coal industry has become scarce and expensive, the coal mining industry has reorganized following multiple bankruptcies, become more financially disciplined, reduced debt, and are returning capital to shareholders.[6]

Range Global LNG Ecosystem Index ETF

The Range Global LNG Ecosystem Index ETF (LNGZ) aims to provide exposure to companies in the Liquified Natural Gas (LNG) industry.

• LNG May Play a Significant Role in Achieving Net-Zero Emissions Ambitions: LNG is the cleanest of fossil fuels.[7] Therefore, it may play a significant role in filling the gaps on the road to net zero.
• 2022 Showed Fragility and Interdependence of the Energy System: Russia’s invasion of Ukraine created a global energy crisis as Europe sought to replace Russian supply.
• Developing Nations May Emphasize Energy Security Over Emissions Reduction: The confluence of Western nations’ desires to secure their energy supply, the desire to reach net-zero carbon emissions, and expected economic growth in Asia may create future demand for LNG.

Range Global Offshore Oil Services Index ETF

The Range Global Offshore Oil Services Index ETF (OFOS) aims to provide exposure to companies in the global offshore oil industry.

• Supply is Tight: Due to years of underinvestment, the supply of equipment used in the offshore oil industry is limited. Day rates for equipment are rising but would need to rise substantially to encourage new supply.[8]
• Demand for Oil is Growing: Global demand for liquid fuels, which includes oil, is expected to grow at an average annual rate of 0.7% through 2050.[9]
• Offshore Accounts for 30% of Oil and Gas Drilling: Offshore makes up 30%-35% of total oil and gas spending.[10]

[1] Bryce, Robert, The Iron Law of Electricity Strikes Again: Germany Re-Opens Five Lignite-Fired Power Plants, Forbes, 10/28/22
[2] How Can Nuclear Power Combat Climate Change? World Nuclear Association website, Retrieved 12/2/23
[3] Nuclear Power, International Energy Agency website, Retrieved 11/17/23
[4] Coal Market Update, International Energy Agency, July 2023
[5] Financiers’ Move Away from Coal Is Accelerating, Report Says, Reuters, 5/3/23
[6] Kit, Norman, The Clean Energy Era Isn’t Keeping Coal Stocks Down. Record Demand Fuels Fresh Surge, Investors Business Daily, 10/12/23
[7] National Grid Website, Retrieved November 2023
[8] Offshore Drilling, Fearnley Securities, 4/28/23
[9] World Liquid Fuels Consumption by Region, Reference Case, U.S. Energy Information Administration, October 2023
[10] Offshore Oil and Gas - The Comeback Kid, Offshore, 12/11/23

Diversification may not protect against market risk.

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.

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 Quasar Distributors, LLC, Exchange Traded Concepts, LLC, or any of its affiliates.