Nuclear Power’s Resurgence Fuels Growth for VanEck’s Diversified ETF

A global reassessment of nuclear energy is creating a powerful tailwind for sector-focused investment vehicles. The VanEck Uranium+Nuclear Energy ETF (NLR) stands out as a fund capturing this momentum, driven by a potent mix of energy security priorities, decarbonization commitments, and surging electricity demand from new technologies.

The fund's recent results reflect the sector's strength. As of January 15, 2026, NLR posted a one-month gain of +12.39% and a robust yearly return of +69.15%. It maintains strong liquidity, with an average daily trading volume exceeding half a million shares.

When compared to peers like the Sprott Uranium Miners ETF (URNM) or the Global X Uranium ETF (URA), NLR differentiates itself through a holistic strategy. Rather than concentrating solely on mining firms, the ETF offers diversified exposure across the entire nuclear ecosystem—from fuel extraction to power generation—thanks to its broader index methodology. It does this with a competitive expense ratio of 0.56%.

A Confluence of Market and Policy Drivers

A significant structural supply deficit is tightening the uranium market. Kazatomprom, the world's largest uranium producer, has announced production cuts for 2026. This has contributed to a rising spot price, which reached $84.95 per pound by January 15, 2026, testing multi-year highs. Analysts at Goldman Sachs project the price could climb to approximately $91 by year-end.

Simultaneously, a pronounced political shift is underway. Governments are reversing long-held stances. The United States has reduced regulatory barriers for uranium enrichers and awarded billion-dollar contracts to bolster domestic capacity. Sweden lifted its ban on uranium exploration in January 2026, and U.S. states including Illinois have removed their moratoriums.

Should investors sell immediately? Or is it worth buying VanEck Uranium+Nuclear Energy ETF?

A new and substantial source of demand is emerging from the technology sector. Major corporations such as Meta, Amazon, and Microsoft are actively evaluating nuclear power to meet the immense energy needs of their AI data centers.

Portfolio Composition: A Full-Chain Approach

The ETF tracks the MVIS Global Uranium & Nuclear Energy Index, holding 28 securities. Its top ten positions constitute roughly 56% of the portfolio, providing focused exposure to key industry players.

The fund is led by uranium mining leader Cameco (8.57%) and power plant operator Constellation Energy (6.80%). Other significant holdings include reactor technology specialist BWX Technologies (5.94%), small modular reactor developer Oklo (5.34%), and uranium exploration company Denison Mines (5.13%). Sector allocation is weighted toward Utilities (43%), Industrials (29%), and Energy (18%), with a geographic focus on North America and Asia.

Forward-Looking Catalysts

The underlying MVIS Index is scheduled for its next quarterly rebalancing in March 2026. The fundamental outlook for the sector remains constructive. Continued policy support, the ongoing development of Small Modular Reactors (SMRs), and the favorable uranium price forecast from Goldman Sachs provide a solid foundation for the fund's holdings. Demand from the artificial intelligence industry may well establish itself as a enduring structural trend for nuclear power.