Range Nuclear Renaissance Index ETF

NUKZ

Market cap $884M

Nuclear power has become the default answer to a question Wall Street did not expect to ask this decade: where will the electricity for AI come from?

For years, governments and industry have discussed the energy trilemma, which is the need for secure, affordable, and low-carbon energy. Following the Paris Climate Accord in 2015, significant emphasis was placed on the low-carbon component as countries and corporations set net-zero emission targets.

The nuclear sector is capturing significant investor attention, as federal policy continues to align with grid modernization efforts. The U.S. Department of Energy (DOE) recently announced $94 million in Federal cost-shared funding to expedite the deployment of advanced small modular reactors (SMRs).

The hyperscalers have a math problem. US power generation from data centers is projected to climb from about 5% of the total to roughly 15% over a five-year span, a step change on a grid that has barely grown since 2000.

Range Nuclear Renaissance Index ETF (NUKZ) has delivered a 53% one-year gain but carries a 0.85% expense ratio and holds only $870M in assets, creating liquidity risks during market stress when bid-ask spreads widen 50-200%. Comparable alternatives include Sprott Uranium Miners ETF (URNM) at 0.75% with $6.86B in AUM and direct Cameco (CCJ) ownership at 101% annual returns with zero fees.

The nuclear sector is delivering concrete progress on multiple advanced reactor programs. Recent weeks brought a positive environmental determination for an X-energy (XE) project, Nuclear Regulatory Commission (NRC) approvals for key technical documents from Oklo (OKLO) and Terrestrial Energy (IMSR), and the start of prototype manufacturing for critical reactor components.

AI-driven data center power demand is reviving nuclear energy, lifting ETFs tied to uranium miners as well as nuclear power generators.

The investment narrative surrounding nuclear energy has shifted dramatically, from a traditional defensive utility play to a high-growth thematic opportunity. While global decarbonization goals and energy security initially catalyzed this shift, the massive power requirements of AI data centers have rapidly accelerated the build-out.

Cameco (CCJ) provided a robust outlook for the deployment of Westinghouse's AP1000 reactor technology on its first quarter 2026 earnings call earlier this month. Company leadership now sees a realistic near-term path to as many as 20 of the large-scale reactor units entering construction in the United States.

I reiterate a buy rating on the Range Nuclear Renaissance ETF, citing compelling growth-adjusted valuation and favorable long-term demand drivers. NUKZ trades at a 20.6x P/E with a 16% long-term earnings growth rate, yielding a PEG ratio of 1.25x. Technical setup shows an ascending triangle with support in the mid-$60s and a measured move upside target of $90.