Amid the Power Boom, Should You Buy a Clean Energy ETF or a Nuclear and Uranium ETF?
Compare sector focus, portfolio makeup, and risk profiles to see how these two different ETFs stack up for investors seeking exposure to the energy transition.
By Neha Chamaria
Investors looking to capitalize on the global transition toward carbon-free power often choose between broad renewable energy strategies and specialized sub-sectors.
The VanEck Uranium and Nuclear ETF (NLR +1.84%) offers concentrated exposure to the nuclear supply chain with higher yields, while the iShares Global Clean Energy ETF (ICLN +3.03%) provides broader, lower-cost access to renewable utilities.
While both funds target the decarbonization of the power grid, they diverge significantly in their underlying technologies, cost structures, and historical risk-adjusted performance.
Snapshot (cost & size)
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The iShares fund is the more affordable option for long-term holders with a 0.39% expense ratio. However, the VanEck fund may appeal to income-oriented investors, as it offers a higher payout with a 2.7% trailing-12-month distribution yield.
Performance & risk comparison
What's inside
The VanEck Uranium and Nuclear ETF focuses exclusively on the nuclear energy sector, tracking companies engaged in uranium mining, nuclear reactor construction, and nuclear-generated electricity. Launched in 2007, the fund maintains a concentrated portfolio of 29 holdings, primarily located in energy (45.00%), utilities (38.00%), and industrials (15.00%). Its largest positions include Cameco (CCJ +0.78%) at 8.21%, Constellation Energy (CEG +2.58%) at 8.03%, and Bwx Technologies (BWXT +1.15%) at 7.02%. The fund has a trailing-12-month dividend of $3.17 per share and provides direct exposure to the nuclear fuel cycle without specific ESG screening mandates.
In contrast, the iShares Global Clean Energy ETF provides a more diversified approach to the sustainable energy market, with a heavy emphasis on solar, wind, and hydrogen technologies. Launched in 2008, it holds 10 positions across utilities (35%), industrials (26%), and energy (25%). Its largest positions include Bloom Energy (BE +15.32%) at 15.55%, First Solar (FSLR +1.14%) at 8.9%, and Nextpower (NXT +2.17%) at 7.5%. This fund has a trailing-12-month dividend of $0.27 per share and focuses on growth-oriented renewable technology companies rather than resource extraction.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
We are in the middle of a global energy crunch. Between the exploding power demands of artificial intelligence (AI) data centers, electric vehicles, and advanced manufacturing, the world needs an unprecedented amount of electricity.
Because governments and corporations are also increasingly bound by carbon-reduction mandates, they cannot simply burn more coal or gas to solve the power crisis. The world needs more clean energy, whether it is renewables such as wind, solar, and hydro, or nuclear energy — also the only zero-emission energy source capable of producing 24/7 baseload electricity. The iShares Global Clean Energy ETF and the VanEck Uranium and Nuclear ETF are two top ETFs to play the power boom.
The iShares ETF gives you exposure to renewables companies across the globe. As of June 18, 48.75% of the fund’s market value was based in the U.S., while China was the second-largest market at 18.48%. India, Brazil, and Denmark are other notable regions the fund tracks.
Unfortunately, the ETF has significantly underperformed the VanEck fund over the past few years. That’s because despite the dire need for more renewable energy, soaring costs of raw materials, high interest rates, the flooding of cheap components such as solar panels from China, and local policy shifts have hurt profitability and the fund’s performance.
NLR data by YCharts
The nuclear energy industry, on the other hand, has found significant backing from the Trump administration and corporates. Tech giants with zero-carbon mandates are aggressively turning to nuclear energy.
Because the VanEck Uranium and Nuclear ETF covers all aspects of the industry, from miners and processors of nuclear fuel (uranium) to builders of nuclear reactors and power facilities to energy producers, the fund has delivered solid returns in recent years. It essentially captures the upside in uranium price as well as the stable, premium cash flows of the electricity providers.