The energy sector may not meet investor expectations this year. The Energy Select Sector SPDR Fund associated with the S&P 500 seems poised to underperform.
Looking a bit deeper—and with perhaps a bit of humor—investors might discover that energy-focused Exchange Traded Funds (ETFs) are not only doing better than past iterations in this space, but they’re also ahead of the wider market. For instance, the VanEck Uranium and Nuclear ETF (NYSEMKT:NLR) has surged an impressive 71.7% since the beginning of 2025. To put it another way, for each dollar put into this nuclear energy ETF this year, investors would have seen a return of over $5 when compared to the Dow Jones Industrial Average.
This is certainly noteworthy, but as 2025 wraps up, investors might be wondering if nuclear energy stocks can keep this momentum next year. It’s difficult to say for sure, but the nuclear sector possesses the key components needed to potentially outperform the market again in 2026.
As it marks its 19th anniversary next August, the VanEck ETF’s journey has been a mix of highs and lows. The 2011 nuclear crisis at Fukushima Daiichi in Japan still looms in investors’ minds. Yet, looking at its year-to-date performance, nuclear energy stocks seem to be faring better recently, aided significantly by advancements in artificial intelligence.
Notably, by the end of 2024, the VanEck ETF had around $1.6 billion in assets under management. By November 7, this impressive figure had nearly doubled to $3.7 billion, showing substantial growth since the year’s beginning.
The demand driving this ETF’s narrative is significant. Data centers, which are key players in the AI revolution, are projected to account for 12% of all electricity generated in the U.S. by 2028. Moreover, global electricity needs for those same data centers are expected to double by 2030. While these statistics underline AI’s massive energy requirements, they don’t explicitly indicate that nuclear power will be the solution.
Still, nuclear energy is crucial for AI advancements for a couple of reasons. First, while some components of the VanEck ETF focus on clean energy, nuclear power offers more consistent energy production, unaffected by the variability of weather that impacts solar or wind energy.
Additionally, the initial investment in nuclear infrastructure is often substantial. However, in the long term, nuclear energy proves to be cost-effective with relatively stable operating expenses. This makes it an appealing option for companies reliant on high energy needs. Moreover, nuclear power is high-density, producing significant electricity in compact quantities.
Another interesting aspect of the VanEck ETF is its diverse representation of the nuclear sector, despite comprising only 28 holdings. It includes nuclear energy producers, firms involved in infrastructure and maintenance, and even uranium miners.
Speaking of uranium mining, Cameco (NYSE:CCJ), the leading player in the industry, holds a major stake in this ETF. This is particularly significant as global uranium production is projected to grow by an annual rate of 8% through 2030, partly fueled by the electricity needs tied to AI.
Another noteworthy holding in the ETF is Oklo (NYSE:Oklo), which ranks as the third-largest investment. Oklo is developing smaller, quicker-to-deploy nuclear reactors that are gaining traction due to favorable regulations in the U.S.
If stocks like Cameco and Oklo continue on an upward trajectory in 2026, then the nuclear ETF could once again surpass the Dow’s performance.
Before diving into the VanEck ETF Trust – VanEck Uranium And Nuclear ETF shares, it’s worth considering some factors from investment analysts.
There’s a list of stocks that analysts have identified as having strong potential for returns. Interestingly, VanEck ETF Trust – VanEck Uranium And Nuclear ETF isn’t among them. These 10 stocks promise impressive returns in the coming years.
Looking back, for example, if someone had invested $1,000 in Netflix back in December 2004, it would have grown to about $622,466 today. Similarly, a $1,000 investment in Nvidia from April 2005 would now be worth around $1,145,426.
It’s important to highlight that our investment framework has yielded an average return of 1,046%, significantly outpacing the S&P 500’s 191%.
In conclusion, make sure not to miss our latest list of top stocks to consider for investment opportunities.
*Stock Advisor returns as of November 10, 2025.
Please note, the mentioned analyst has no positions in any stocks referenced. The Motley Fool endorses Cameco and has a disclosure policy regarding investment recommendations.
This ETF has shown strong performance against the Dow Jones and S&P 500, with expectations for continued success in 2026.
