A New Wave of Nuclear Momentum

As energy systems evolve under mounting demand and shifting economics, both nuclear and coal remain influential players, each offering unique strengths in an era of electrification, AI, and climate urgency. Rather than dismiss one over the other, smart policy should harness the advantages of both while correcting their shortcomings.

Last week’s headlines offer timely insights. Japan has reactivated 14 of 54 nuclear reactors, fourteen years after Fukushima, aiming to deliver 20 percent of its electricity from nuclear by 2040, down from nearly 70 percent reliance on fossil fuels in 2023. Tokyo is also partnering on small modular reactor (SMR) programs abroad to build domestic credibility while navigating delays and public caution¹. At the same time, the World Bank and IAEA formally revived nuclear funding for developing countries, signaling international momentum behind next generation reactor deployment².

Closer to home, New York’s Governor Hochul ordered development of one gigawatt of new nuclear capacity to meet soaring industrial and climate goals. Nuclear already provides 22 percent of the state’s output while supporting union jobs and energy reliability³. This initiative reflects a broader sense that nuclear remains vital as gas fired plants retire and demand from sectors like semiconductor fabrication rises.

Coal’s Unlikely Summer Resurgence 

Meanwhile, US coal is resurging this summer. Emissions in the power sector surged 5 percent (to around 640 million tonnes) over the first five months of 2025, driven by a 14 percent jump in coal generation as gas prices spiked and utilities scrambled to meet peak demand⁴. Experts warn that without reform, entrenched coal subsidies disguise its true cost: Americans still pay billions annually to prop up aging plants⁵.

Coal also retains value as energy infrastructure. Retired coal plant sites are increasingly attractive for conversion to data center campuses, battery storage, gas turbines, or even nuclear deployments. Developers cite existing grid connections and available space as major advantages⁶. In Tasmania, however, wholesale reliance on renewables backfired when a paper mill had to import coal due to insufficient clean energy supply, jeopardizing jobs and raising operational costs⁷.

The Case for Complentarity

This complex picture underscores the complementary roles of nuclear and coal:

• Nuclear offers low emission baseload power, excellent for supporting industrial growth and climate targets, though public skepticism and slow timelines, especially for SMRs, remain hurdles¹²³
• Coal delivers dependable, on-demand power and leverages existing infrastructure to meet surging energy needs during periods of peak demand. While it carries a higher carbon footprint, coal remains a vital reliability resource, particularly as renewable energy sources scale and energy storage technology continues to mature⁴⁵

A balanced strategy might combine both while steering toward modernization. For nuclear, accelerating uptake through regulatory streamlining, public education, and support for SMRs can reduce costs and build trust. For coal, phasing out subsidies, retrofitting plants with carbon capture or other technologies, and repositioning sites for mixed clean energy purposes can ease transition pathways.
Now is the moment for smart transition planning, not ideological lock in. Nuclear can power tomorrow’s industries reliably and cleanly. Coal, when managed transparently and repurposed, can bridge toward a low carbon future without abandoning communities or risking reliability. By wielding both tools thoughtfully, policymakers can chart a course that is resilient, economically robust, and sustainable.

How May Investors Gain Exposure to Companies in the Coal and Nuclear Power Industry?

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 met and thermal coal industry.

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.

See www.rangeetfs.com/nukz  and www.rangeetfs.com/coal for a full list of positions. Holdings subject to change.

Sources:
1. "Japan Switches Back to Nuclear, 14 Years After Fukushima." Financial Times, 2 July 2025, www.ft.com/content/2cbb2589-b60e-46d4-8be9-399f48bf3e4c.
2.  "World Bank Ends Nuclear Lending Ban, Partners with IAEA." Reuters, 1 July 2025, www.reuters.com/business/energy/world-bank-ends-nuclear-lending-ban-2025-07-01.
3.  "Investments in Nuclear Energy Will Be Good for the Climate and New York's Economy." Times Union, 1 July 2025, www.timesunion.com/opinion/article/investments-nuclear-good-climate-n-y-economy-20421542.php.
4.  "US Power Pollution Climbs on Higher Coal Use." Reuters, 1 July 2025, www.reuters.com/markets/commodities/us-power-pollution-climbs-higher-coal-use-2025-07-01.
5.  "Letter: Subsidies Hide Real Price Countries Pay for Continued Coal Use." Financial Times, 2 July 2025, www.ft.com/content/71a5363e-c4b1-49b3-8e15-e14f20bbe1d5.
6.  "Big Tech Is Buying Up Old Coal Plants to Meet AI’s Insatiable Energy Needs." Wall Street Journal, 3 July 2025, www.wsj.com/tech/big-tech-coal-plants-data-centers.
7.  "Tasmania’s Reliance on Renewables Backfires as Mill Imports Coal." ABC News Australia, 4 July 2025, www.abc.net.au/news/2025-07-04/tasmania-renewables-shortage-mill-coal-imports.

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 and www.rangeetfs.com/coal. 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 and COAL 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.