VettaFi, a differentiated index provider with modern distribution solutions and a subsidiary of TMX Group, announced today the acquisition of a suite of three indices from Range Fund Holdings and North Shore Indices, including the Range Nuclear Renaissance Index (NUKZ). 

Brian Coco, Chief Product Officer at VettaFi, stated, “The acquisition aligns perfectly with our mission to offer investors specialized exposure to powerful, long-term megatrends.”

The acquired indices, which track nuclear energy and uranium mining companies, arrive at a time when the investment case for nuclear power is stronger than ever.

The investment case: Powering the AI economy

The nuclear sector is being driven by a powerful confluence of policy tailwinds and exploding electricity demand, creating compelling investment opportunities:

• AI and data center demand: The proliferation of data centers to support the massive processing needs of Artificial Intelligence (AI) is driving a ravenous demand for reliable, always-on electricity. Nuclear power is uniquely positioned to serve as the foundational, clean power source for this critical new infrastructure.
• Policy support and renaissance: Global policy, including recent U.S. and Eurozone initiatives, increasingly supports nuclear energy as a foundational pillar for meeting both growing energy needs and carbon reduction goals. This environment is seeing old reactors come back online and new technologies gain approval, such as NextEra Energy’s recent approval to restore a reactor in Iowa.
• Proven performance: The Range Nuclear Renaissance Index ETF, which also trades under the ticker NUKZ,  tracks the Range Nuclear Renaissance Index. The ETF has already demonstrated strong momentum, delivering a 59% year-to-date return and accumulating over $630 million in assets. NUKZ significantly outperformed its category and segment averages in a rapidly growing sector.

Unique exposure to pureplay downstream 

The Range Nuclear Renaissance Index offers investors a differentiated, pure-play approach to nuclear energy. Unlike competitors, the index focuses on downstream utilities, reactor operators, and technology developers, positioning it to directly benefit from end-user demand and recent pro-nuclear policy shifts, and allowing investors to capture value from the technology innovators driving the sector.

Expanding indexing scale and expertise

This acquisition marks the sixth by VettaFi in the last few years, showcasing both its commitment to expanding on a legacy of offering innovative index capabilities to meet client needs and its world-class index platform. With the addition of these nuclear indices, VettaFi now boasts an indexing platform spanning more than 1,250 indexes across all major asset classes.

This article was originally published on ETF Trends.