How to play Bill Gates’ nuclear power bet

Nuclear Power Plant – Uranium

Bill Gates is betting on the future of nuclear power as his next-generation nuclear power plant, TerraPower, began construction last week.

Although his company is privately held, investors in exchange-traded funds can gain exposure to the growth potential of nuclear power through uranium ETFs.

Nuclear power plants use controlled nuclear fission of enriched uranium to generate heat that boils water to create steam and spin turbines for electricity.

Gates’ next-generation nuclear power plant uses liquid sodium, which has a boiling point eight times that of water. So, according to Gates, “it can absorb all the extra heat generated in the nuclear core,” thereby limiting the temperatures that could cause fusion.

After last week’s groundbreaking event in Kemmerer, Wyo., Gates noticed on his blog that he expects the site “to soon be the foundation of America’s energy future” and that the move represents “the biggest step yet toward safe, abundant, carbon-free energy.”

Why is nuclear energy fashionable?

Nuclear power is in vogue amid growing concerns about climate change and geopolitical tensions, highlighting the need to move toward clean energy resources and energy independence.

• Climate change concerns: As countries strive to reduce their carbon emissions, nuclear power is attracting renewed interest as a clean energy source that produces minimal greenhouse gases during operation.

• Energy security: The volatility of oil prices in the context of the Russian-Ukrainian and Israeli-Palestinian wars has highlighted the importance of energy independence. Nuclear power plants use domestic uranium fuel, providing a safe source of energy compared to imported fossil fuels.

Nuclear Energy and Uranium ETF

There are several nuclear energy ETFs available to investors. These funds invest in companies involved across the entire nuclear energy sector, from uranium mining to the construction and operation of nuclear power plants. Here are some examples:

VanEck Uranium and Nuclear ETF

THE VanEck Uranium and Nuclear ETF (NLR) tracks the MVIS Global Uranium & Nuclear Energy Index, which includes companies involved in uranium mining, construction and maintenance of nuclear facilities, and nuclear power generation.

Global X Uranium ETF

THE Global X Uranium ETF (URA) focuses primarily on uranium mining companies, but also includes some companies involved in other parts of the nuclear energy sector.

Sprott Uranium Miners ETF

THE Sprott Uranium Miners ETF (URNM) focuses on companies that mine uranium, with some investments in uranium exploration and development companies.

Conclusion on Investing in Uranium ETFs

Investors can potentially benefit from uranium ETFs through an increase in the underlying stock prices of companies involved in the nuclear energy sector, driven by factors such as rising uranium prices or the growing demand for nuclear energy.

The story continues

If the price of uranium or the nuclear power sector strengthens, an ETF that holds these companies should also increase in value. However, it is important to keep in mind that uranium ETFs are a volatile investment and therefore there is also a risk of share prices falling.

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