Why These 3 Nuclear ETFs Are Getting a Fresh Look as AI Power Demand Rises

Key Points

• Nuclear energy has gained renewed policy support as artificial intelligence and data center demand increase the need for reliable electricity.
• The VanEck Uranium and Nuclear ETF offers broad exposure to uranium miners, nuclear utilities, reactor services and related infrastructure companies.
• The Sprott Uranium Miners ETF and Global X Uranium ETF provide more targeted uranium exposure, though their portfolios and risk profiles differ.

More than a year after the federal government renewed a push toward nuclear energy, the industry is building momentum thanks to a streamlined process for reactor authorization, an ambitious goal of 300 additional gigawatts of capacity by 2050, and more. The timing is crucial, as AI electricity demand continues to grow and low-carbon energy generation via nuclear facilities is particularly appealing in these contexts.

To be sure, challenges remain: sourcing the high-assay low-enriched uranium (HALEU) necessary for some next-gen reactors is difficult, and supply chain and manufacturing capacity limitations, workforce shortages, and the licensing process can all hold up the industry's capabilities to deliver nuclear energy quickly. Still, as the industry continues to evolve and grow, a number of exchange-traded funds (ETFs) can expose investors to the many potential growth opportunities in the nuclear industry. Now may be a good time to explore these options, as a sell-off in the industry in 2026 after a previous successful run can present buy-in opportunities.

A Selective Basket of Global Nuclear Stocks

The VanEck Uranium and Nuclear ETF NYSEARCA: NLR is one of the oldest nuclear industry ETFs on the market, having launched in the summer of 2007. The fund's staying power may be due to its broad strategy within the industry, allowing access to the full nuclear power generation process from the sourcing and production of input materials to companies operating power plants and more.

NLR achieves this mix despite its fairly small basket of 32 stocks. With a targeted portfolio like this, investors should expect that some names will receive sizable allocations, and indeed, the largest positions here do range up to 8% or more. Still, given its global focus, NLR is able to funnel its assets into the most stable, highest-performance nuclear stocks available worldwide, aiming for both breadth and quality.

Like many nuclear funds, NLR's year-to-date (YTD) performance is in the red: the ETF has declined by almost 12% in 2026. This valuation reset across the industry could provide an opportunity, although investors must be willing to accept NLR's 0.56% expense ratio while they wait for the momentum to build again.

A Unique Play on Uranium Miners With a Commodities Twist

For a more targeted play on uranium itself, investors might consider the Sprott Uranium Miners ETF NYSEARCA: URNM. This fund invests primarily in companies involved in the uranium mining industry, including those that explore, develop, produce, or hold physical uranium. This industry is a niche one, and URNM has only 31 holdings based on a global screen. Given the significant overlap between URNM's portfolio and NRL's holdings, it's unlikely that investors would want to hold both funds at the same time.

Three positions in URNM's basket make up nearly half of the fund's total assets, collectively. These include uranium providers Cameco Corp. NYSE: CCJ and NexGen Energy NYSE: NXE, but the third stands out: it is a position in the Sprott Physical Uranium Trust, which holds physical uranium. Thus, URNM is in part a commodities play on uranium itself. This may help to explain why the fund is somewhat more expensive than several of its nuclear peers, with an expense ratio of 0.75%.

Despite its YTD decline, URNM offers a dividend yield of 2.59%, a passive income perk even as the nuclear industry is in the midst of a reset.

An Alternative Approach to Uranium With a Standout Dividend Yield

A competitor of URNM, the Global X Uranium ETF NYSEARCA: URA also focuses on the material essential for nuclear power. However, URA accesses uranium via shares of companies involved in mining and production, rather than through any type of direct investment in the commodity itself. URA has the broadest portfolio of these three ETFs, with about 56 holdings from developed markets around the world. Still, it is, in some ways, also the most concentrated: Cameco shares make up nearly a quarter of the fund.

URA's expense ratio of 0.69% lies between the two funds' fees above, and it has a solid asset base of $5.7 billion and a hearty trading volume to match. This makes the fund appealing to investors seeking the flexibility to make frequent trades without worrying about liquidity. It may also reflect the ETF's strong dividend yield of 5.26%. While UFA has also slipped so far this year, it has held up better than the other uranium-focused funds on this list.