Nuclear power is increasingly attracting investor attention. Compared to alternative energy sources such as solar or wind, nuclear energy is considered more efficient and reliable – and reflected accordingly in the corresponding performance of different investment themes.
Year-to-date, the 'nuclear energy’ theme has seen an upswing of +32.56% - suggesting growing confidence among investors regarding nuclear power’s potential to deliver stable returns and sustainable growth.
In contrast, alternative energies have not fared well since the beginning of the year. The 'solar energy' theme has experienced a downturn of -41.57%, while the 'wind energy' theme has decreased by -25.10%. These figures suggest that investor sentiment may be shifting away from these forms of renewable energy, at least in the short term.
Indeed, there are high costs associated with financing new wind turbines and solar panel parks, especially when compared to existing nuclear power plants which have typically depreciated over several decades. In addition, rising interest rates add further pressure to costly projects such as those linked to alternative energy development.
The enhanced levels of efficiency and reliability associated with nuclear power are also likely contributory factors in its growing appeal among investors. Unlike solar or wind power, which can be affected by weather conditions and geographical location, nuclear plants can generate electricity consistently throughout the year while requiring fewer materials and producing less carbon.
Illustrating this growth, SG ETN Uranium Mining ETF (U3O8) gained +3.06% over the week - bringing its year-to-date performance to +45.81% - while collecting more than $92 million in new assets.
Group Data: Nuclear Energy, Solar Energy, Wind Energy
Funds Specific Data: U3O8, URAM
