Van Eck launches Nuclear Energy ETF

August 16, 2007

SAN DIEGO (ETFguide.com) - From trash collection to steel production, exchange-traded funds (ETFs) have it covered. And now, there's nuclear energy.

This week the Market Vectors–Nuclear Energy ETF (Ticker: NLR) debuted on the American Stock Exchange (Amex). The fund is managed by Van Eck and will focus on a broad spectrum of companies involved in nuclear energy. According to the prospectus, the fund will charge a net expense ratio of 0.65 percent. Options are expected to be available soon.

The Market Vectors ETF shadows the DAXglobal  Nuclear Energy Index (DXNE), a basket of the securities of 38 nuclear energy companies listed on global exchanges.

Companies in the index include uranium miners, such as Cameco and Paladin Resources, as well as nuclear plant builders like Mitsubishi Heavy Industries and Kajima. Other index components are involved in uranium enrichment and uranium storage, nuclear fuel transportation, nuclear energy generation and nuclear-related equipment. NLR companies generally derive at least 50% of their revenue from nuclear energy.

The index has a total market capitalization of approximately $110 billion.

“The world’s need for energy is expected to grow along with the global economy. We think nuclear energy will assume an increasingly important role as a source of alternative energy,” said Jan van Eck, Principal at Van Eck Global.

Other ETFs managed by Van Eck are the Market Vectors Environmental Services ETF (Ticker: EVX), the Russia ETF (Ticker: RSX) and the Market Vectors Steel ETF (Ticker: SLX).

Van Eck Associates was founded in 1955 and focuses its expertise on emerging markets, precious metals, and other specialized asset classes. As of July 31, 2007 the New York-based investment firm managed just over $6 billion.