Investment companies take on nuclear energy

15 August 2007

Two US financial institutions have launched products to assist investors interested in the nuclear energy industry. Standard & Poor's has introduced an index of nuclear-related companies, while Van Eck has launched an exchange traded fund of companies involved in the industry.


Standard & Poor's (S&P), a provider of financial market intelligence, has expanded its Global Thematic Indices with the addition of three new indices, including the S&P Global Nuclear Energy Index. This index includes stocks of 20 of the largest publicly traded companies in the global nuclear energy business from both developed and emerging markets. S&P said the index is equally distributed between two clusters: nuclear materials, equipment & services and nuclear energy generation.


The company also added the S&P Global Alternative Energy Index, which is "designed to measure investable opportunities in the complete global alternative energy space." S&P said that this index is comprised of the S&P Global Clean Energy Index, launched in February, and the S&P Global Nuclear Energy Index. In addition, the S&P Global Timber & Forestry Index has been launched. S&P's Global Thematic Indices also includes indices on Global Infrastructure and Global Water.


Meanwhile, New York-based investment manager Van Eck Global has launched a new Market Vectors-Nuclear Energy Exchange Traded Fund (ETF) - the first and only ETF of its type listed in the USA. ETFs are open-ended mutual funds that can be traded at any time throughout the course of the day. Typically, ETFs try to replicate a stock market index such as the S&P 500 or the Hang Seng Index, a market sector such as energy or technology, or a commodity such as gold or petroleum.


Van Eck's Market Vectors-Nuclear Energy ETF (NLR) will seek to replicate as closely as possible, before fees and expenses, the price and yield performance of the DAXglobal Nuclear Energy Index (DXNE). This index is calculated and maintained by Deutsche Borse AG. As of 27 July, it is comprised of the stocks of 38 publicly traded companies engaged in uranium mining, enrichment and storage, nuclear plant infrastructure, fuel transportation and energy generation, and providing equipment for use in the provision of nuclear energy. NLR companies generally derive at least 50% of their revenue from the nuclear energy industry.


Further information


Standard & Poor's
Van Eck Global