As geopolitical tensions once again dominate headlines, the global economy finds itself on unsteady footing. Just as markets began adjusting to a post-pandemic landscape, the return of aggressive trade policy rhetoric has reintroduced a new wave of uncertainty.
Last week, President Donald Trump unveiled a sweeping proposal to impose a 60 percent tariff on all Chinese imports. He further suggested targeting Chinese-built and Chinese-owned vessels entering U.S. ports, a move that would significantly escalate trade hostilities between the world’s two largest economies [1]. While the policies have yet to be enacted, their mere suggestion has already sent waves through global markets, prompting fears of renewed supply chain disruptions and retaliatory measures.
Allies and Economists Sound the Alarm
Key trading partners have responded with concern. Tim Reid, the head of UK Export Finance, described Trump’s erratic tariff policies as harder to navigate that the COVID-19 pandemic, noting that such unpredictability makes it difficult for companies to plan and invest with confidence [2]. The warning signs are not isolated. Harvey Schwartz, CEO of The Carlyle Group, remarked this week that a recession is “certainly on the table,” citing growing unease around the global economy’s ability to absorb another round of protectionist measures [3].
This uncertainty underscores a broader shift in priorities for both policymakers and investors. Energy security, long taken for granted in many parts of the world, has returned to the top of the strategic agenda. The global economy, increasingly fragmented and volatile, is forcing nations to rethink their energy foundations. In this environment, nuclear power is experiencing a meaningful revival.
The Energy Equation in a Fractured World
A recent article in USA Today explored the question of whether nuclear energy might be the solution to meeting rising power needs in a rapidly electrifying world. The piece highlighted a growing consensus that while renewables such as wind and solar are critical, they often require a dependable counterpart that can deliver reliable base-load power around the clock [4]. Nuclear fits that profile more convincingly than most other sources.
Why Nuclear Power is Gaining Ground
Governments are beginning to act accordingly. According to a recent report from GlobalData, global nuclear power capacity is projected to grow significantly in the years ahead, with expectations reaching 494 gigawatts by 2035 [5]. This expansion is being driven by traditional reactors as well as emerging designs aimed at improving efficiency and safety. While Small Modular Reactors have attracted interest, the outlook remains mixed and their role, though promising in certain contexts, may not represent the primary driver of the sector’s resurgence.
Looking Beyond the Hype
What is increasingly clear is that established nuclear infrastructure is being reassessed, modernized, and in many cases expanded. In the United Kingdom, even regions that have traditionally resisted nuclear energy, such as Scotland, are exploring new facilities as part of the broader move away from fossil fuels and imported energy [6]. Similar efforts are underway across Europe, Asia, and North America, where energy independence and decarbonization goals are aligning with renewed support for nuclear technology.
A Secular Opportunity
For investors, this represents a rare alignment of structural tailwinds. While other sectors face cyclical risks tied to global trade volatility, nuclear energy is increasingly supported by long-term policy commitments, climate targets, and infrastructure spending. Companies across the nuclear value chain are beginning to attract new capital, from uranium mining and fuel cycle firms to plant operators and engineering firms supporting reactor development.
Exchange-traded funds and equities focused on nuclear are beginning to reflect this renewed interest. Yet many of the underlying companies remain relatively under-owned. Institutional flows, while growing, have yet to fully capture the scope of what could become a multi-decade investment cycle. The relative obscurity of these names, combined with their growing strategic relevance, offers an opportunity for forward-looking investors.
Nuclear as a Strategic Hedge
Nuclear energy is not just a clean energy solution. It is a tool of resilience in a world defined by economic fragmentation, geopolitical risk, and intensifying energy demands. As tariff wars re-emerge and policy volatility reshapes the global landscape, the ability to produce affordable, reliable, and domestically sourced power has become more valuable than ever.
For those managing long-term portfolios, the case for allocating to nuclear equities is strengthening. The sector benefits from clear macro tailwinds, supportive government action, and a foundational role in the transition to a lower-carbon, energy-secure world. As the conversation around tariffs and global instability continues to evolve, nuclear’s relevance—economically, politically, and environmentally—will likely grow stronger.
This is not a momentary trend. It is the reawakening of a sector whose value proposition is more relevant today than at any time in recent memory.
How May Investors Seize The Opportunity in The Nuclear Energy Sector?
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] Trump Tariff Plan for Chinese Ships Raises Stakes in Trade War, The Times, April 19, 2025
[2] Trump's Erratic Tariffs Harder to Navigate Than Pandemic, Says UK Export Agency, The Guardian, April 21, 2025
[3] A Recession Is 'Certainly on the Table,' Says Carlyle Group CEO Harvey Schwartz, Business Insider, April 20, 2025
[4] Is Adding More Nuclear Power the Solution to Our Growing Energy Needs?, USA Today, April 18, 2025
[5] Global Nuclear Power Capacity to Reach 494GW by 2035, Driven by Advancements in SMRs, AltEnergyMag, April 17, 2025
[6] Nuclear News Weekly Summary w/e 18th April 2025, No2NuclearPower.org.uk, April 18, 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.
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.
