ETF Portfolios: Go Nuclear with NLR

Posted on December 6, 2008 at 4:27 PM PST by

While the world is seeking out alternative energy sources, nuclear energy is gaining some steam. Iran’s Deputy Foreign Minister, Hossein Sheikholeslam, recently said that his country needs nuclear energy as a substitute for its oil resources. He is quoted as saying that, “Iran will have oil for over 100 years, but once its energy resources is depleted, nuclear energy will be the only logical substitute.”

The United States isn’t quite as bullish on nuclear energy at this point in time, but Obama’s administration is going to flood dollars into infrastructure projects — many of which are to get us off our “oil addiction.” If you feel nuclear energy is a solution there is a way to invest on a global level. By selecting an exchange traded fund (ETF) that is focused on the nuclear energy field you are essentially investing your money in several different companies across the globe who are leaders in this industry.

Market Vectors Nuclear ETF (NLR) is an excellent way to diversify your investment in the nuclear energy field as they not only offer incredible global exposure, but also give you a chance to invest in a variety of aspects of nuclear energy generation, from uranium mining all the way through to fuel transport. With an investment in NLR you will get shares in British Energy (LSE: BGY.L) the U.K.’s largest producer of electricity, Exelon Corporation (NYSE: EXC) a utility services holding company, Constellation Energy Group (NYSE: CEG) and energy supply company for North America. You also get, in this basket, companies that supply materials necessary for building and running a nuclear power plant like Uranium One Incorporated (Toronto: UUU.TO) a Canadian based uranium mining and exploration company, as well as many other leaders in the field.

Market Vectors charges only a 0.65% fee, a fraction of what a professional money manager would charge to analyze, research and select nuclear energy stocks with this level of global reach. Proving the global perspective, the top 10 holdings, representing 64.48% of the total assets, are listed below.

9.02% BRITISH ENERGY
4.22% CAMECO CORP COM NPV
7.38% Constellation Energy Group, Inc.
8.19% Electricite de France
4.34% Energy Resources of Australia Ltd.
7.81% Exelon Corp.
4.87% JGC CORPORATION
8.15% Mitsubishi Heavy Industries, Ltd.
5.15% PALADIN FPO
5.35% Uranium One Inc




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