The uranium market is experiencing a resurgence, and investors are taking notice. At Natural Resource Stocks, we’ve seen growing interest in nuclear energy as a clean power source.
The VanEck Uranium and Nuclear ETF offers a unique opportunity to tap into this sector’s potential. In this post, we’ll explore how you can invest in this ETF and why it might be a valuable addition to your portfolio.
Understanding the VanEck Uranium and Nuclear ETF
Fund Overview and Strategy
The VanEck Uranium and Nuclear ETF (NLR) provides investors with exposure to the uranium and nuclear energy sectors. This financial instrument replicates the performance of the MVIS Global Uranium & Nuclear Energy Index. NLR invests at least 80% of its total assets in companies involved in uranium mining, nuclear energy production, and related services. This focused approach offers investors concentrated exposure to the nuclear industry.
Key Holdings and Sector Breakdown
As of September 9, 2025, NLR’s portfolio maintains a diverse yet targeted composition. Some of the key holdings include Kepco Engineering & Construction Co Inc at 3.10%, Fortum Oyj at 2.93%, and Deep Yellow Ltd at 2.85%. This mix allows investors to benefit from various aspects of the nuclear energy value chain (from mining to power generation).
Performance Analysis
The VanEck Uranium and Nuclear ETF has demonstrated impressive results in recent years. These figures highlight the strong growth potential in the uranium and nuclear sectors. The fund’s expense ratio is currently 0.56% (maintained until at least May 1, 2026), which is competitive within the specialized ETF market.
Risk Factors
Investing in NLR comes with specific risks that investors should consider:
- Regulatory changes can impact stock prices in the nuclear energy sector.
- Public perception shifts may affect the industry’s growth prospects.
- Technological advancements can disrupt existing business models.
- Uranium prices can be volatile, affecting the profitability of mining companies in the fund’s portfolio.
Market Outlook
The World Nuclear Association projects significant growth in uranium demand. Demand for uranium in nuclear reactors is forecast to climb by 28% by 2030 and more than double by 2040 to over 150,000 metric tons a year. This growth is driven by the global push for reliable, low-carbon energy sources.
Geopolitical factors also play a crucial role in the uranium market. Kazakhstan currently produces 40% of the world’s uranium supply, while Russia controls about 40% of global enrichment capacity. These concentrations of supply could lead to market volatility in the face of international tensions.
The VanEck Uranium and Nuclear ETF offers a way to capitalize on these market trends while spreading risk across multiple companies in the sector. As the world continues to seek clean energy solutions, NLR presents an opportunity for investors to participate in the potential growth of the nuclear industry. With this understanding of the ETF’s structure and market dynamics, let’s explore the benefits of investing in uranium and nuclear energy.
Why Invest in Uranium and Nuclear Energy
Clean Energy Demand Surge
Global electricity demand is forecast to rise at its fastest pace in recent years, growing at close to 4% annually through 2027. Nuclear power, a low-carbon energy source, will play a significant role in meeting this demand while addressing climate change concerns. Countries like China, India, and Russia are expanding their nuclear capacity rapidly. China intends to build 150 new nuclear reactors between 2020 and 2035, with 27 currently under construction, highlighting the sector’s growth potential.
Uranium Market Rebound
The uranium market has experienced a significant rebound in recent years. Spot prices have more than doubled since 2020, reaching $65 per pound in September 2025. This price increase stems from supply constraints and growing demand. Cameco, one of the world’s largest uranium producers, predicts a supply deficit of 30 million pounds by 2030, which could push prices even higher.
Portfolio Diversification Benefits
Investing in uranium and nuclear energy through ETFs like the VanEck Uranium and Nuclear ETF (NLR) offers portfolio diversification benefits. The sector’s performance often has a low correlation with broader market indices, providing a hedge against market volatility. During the 2020 market downturn, the NLR ETF outperformed the S&P 500 by 15%, demonstrating its potential as a portfolio stabilizer.
Allocation Strategies
Investors who seek exposure to the uranium and nuclear energy sector can consider allocating 2-5% of their portfolio to specialized ETFs or individual stocks. However, it’s important to conduct thorough research and understand the risks associated with this volatile sector.
Expert Insights and Analysis
For investors looking to make informed decisions in the natural resources market (including uranium and nuclear energy), expert analysis and insights are invaluable. Natural Resource Stocks stands out as the top choice for in-depth market analysis, expert commentary on geopolitical and policy impacts, and exploration of emerging market opportunities in the sector.
As we move forward, let’s explore how you can practically invest in the VanEck Uranium and Nuclear ETF and incorporate it into your investment strategy.
How to Buy Shares of the VanEck Uranium and Nuclear ETF
Choose a Brokerage Platform
The first step to invest in the VanEck Uranium and Nuclear ETF (NLR) is to select a suitable brokerage platform. Look for brokers that offer commission-free ETF trading, user-friendly interfaces, and comprehensive research tools. Popular options include Fidelity, Charles Schwab, and TD Ameritrade. These platforms provide access to NLR and feature competitive fee structures.
When you select a broker, consider factors such as account minimums, available research tools, and customer support. Fidelity, for example, has no account minimum and offers extensive educational resources (ideal for beginners). Charles Schwab provides advanced charting tools that may appeal to more experienced investors.
Set Up and Fund Your Account
After you choose a brokerage, open an account. This process typically requires you to provide personal information, including your Social Security number and employment details. Most brokers now offer entirely online account opening processes, which you can complete in less than 30 minutes.
Once your account is approved, fund it. Most brokers allow various funding methods, including bank transfers, wire transfers, and check deposits. Bank transfers are often the most convenient and cost-effective option, though they may take a few days to process. For faster access to funds, use a wire transfer, which can be completed within one business day.
Place an Order for ETF Shares
With your account funded, you can now invest in NLR. Navigate to your broker’s trading platform and search for the ETF using its ticker symbol: NLR. Before you place your order, review the ETF’s current price, volume, and any associated fees.
When you place your order, you have the option to use a market order or a limit order. A market order executes immediately at the best available price, while a limit order allows you to set a specific price at which you’re willing to buy. For most investors, a market order is sufficient, especially if you’re investing a relatively small amount.
Consider a Dollar-Cost Averaging Strategy
Instead of investing a large sum at once, try a dollar-cost averaging strategy. This approach involves investing a fixed amount at regular intervals, regardless of the ETF’s price. For example, you might invest $500 in NLR every month.
Dollar-cost averaging can help mitigate the impact of market volatility and reduce the risk of investing a large sum at an inopportune time. Many brokers offer automatic investment plans that can facilitate this strategy, allowing you to set up recurring investments in NLR.
Final Thoughts
The VanEck Uranium and Nuclear ETF offers investors a unique opportunity to tap into the growing uranium and nuclear energy sectors. As global demand for clean energy rises, nuclear power will play a significant role in meeting these needs. The ETF’s strong performance and projections of increasing uranium demand highlight its potential in the current market landscape.
Investors should carefully consider the risks associated with the VanEck Uranium and Nuclear ETF, including sector volatility and regulatory challenges. However, the potential for high returns and portfolio diversification benefits make it an attractive option for those willing to navigate these risks. The ETF provides a convenient way to gain exposure to uranium and nuclear energy without directly investing in individual companies.
For the latest developments in uranium and nuclear energy sectors, Natural Resource Stocks provides expert analysis and market insights. Our platform covers factors influencing resource prices, helping investors make informed decisions in this dynamic market. As nuclear energy’s role in the global push for cleaner power expands, the VanEck Uranium and Nuclear ETF represents a unique opportunity to participate in this pivotal shift.
