Van Eck has launched an ETF in Europe that is focused on uranium and nuclear technologies.
Van Eck Uranium and Nuclear Technologies UCITS ETF has listed on the Deutsche Börse Xetra with a London listing expected imminently.
The ETF offers investors access to companies worldwide that generate at least half of their revenues from uranium or nuclear energy infrastructure.
This includes the mining, exploration, development and production of uranium and other activities that support uranium mining. Uranium is used especially in nuclear power plants to generate electricity.
The ETF is linked to the MarketVector Global Uranium and Nuclear Energy Infrastructure Index which selects its constituents from a universe of developed market stocks with market capitalizations greater than $150 million and average daily trading volumes above $1m.
The benchmark index currently comprises 25 companies mainly based in Canada, Japan, USA, and South Korea. The weighting of a company is limited to 15%.
The methodology screens for firms that derive at least 50% (25% for current components) of their revenues from the mining, exploration, development, and production of uranium.
The index also includes companies deriving at least 50% (25% for current components) of their revenues from the development and commercialization of nuclear fusion technology or molten salt nuclear reactor research; the construction, engineering, and maintenance of nuclear power facilities and nuclear reactors; and the provision of equipment, technology, and services to the nuclear power industry.
The ETF has an expense ratio of 0.55%. Income is accumulated within the portfolio.
