Nuclear energy: back in the focus of investors

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  Serge Nussbaumer
  Chefredaktor

Mr. Tahir, what are the current arguments for investing in nuclear energy?

According to an analysis of thematic funds by WisdomTree¹, nuclear energy was the best performing theme in Europe this year. The reason for this is simple: the world needs more energy than ever before. In the US alone, data center power demand could almost triple by 2030². Hyperscalers need reliable and low-emission energy to meet this demand. Governments are now supporting the expansion of nuclear power, making this a promising and timely long-term investment opportunity.

The WisdomTree Uranium and Nuclear Energy Energy ETF invests in upstream and midstream companies and innovatorsthe uranium and nuclear energy sector. Can you explain how you define and weight these categories?

The ETF NCLR invests along the entire nuclear energy value chain. About 60% is in upstream companies that mine uranium or produce reactor materials, which is the most established and purest segment. About 25% is in the midstream segment, including companies that build and maintain nuclear power plants, turbines and detection systems. The remaining 15% is accounted for by innovators developing small modular reactors and fusion technologies. These are still young but promising opportunities, so a moderate allocation will exploit their growth potential without excessive risk.

In your opinion, what are the biggest risks risks for this sector?

Public opinion remains one of the biggest risks for the nuclear sector. Despite major advances in safety and efficiency, perceptions of danger and waste continue to weigh on acceptance. In reality, nuclear waste is solid, safely stored and well managed. The Onkalo plant in Finland, built deep underground, shows how long-term solutions are progressing. Overcoming outdated views and maintaining regulatory momentum will be crucial for sustainable growth in nuclear energy investment.

Currently, around 36% of investments are made in Canada, 27% in the USA and 11% in the UK. to Australia. What opportunities and risks result from this geographical weighting?

The geographical spread reflects where the majority of the world’s listed nuclear energy and uranium expertise is located. Canada and the US dominate uranium mining, reactor development and related technologies, while Australia is another important source of high-quality uranium. These regions also benefit from strong regulation and political stability, which reduces operational risk. The main risk is concentration: political or commodity-related shocks in these markets can have a disproportionate impact. However, diversification along the value chain helps to mitigate this risk.

How do you define the category “innovators” in the ETF and what role do such companies play in the portfolio?

Innovators in the WisdomTree Uranium and Nuclear Energy ETF are companies developing next-generation nuclear technologies, such as small modular reactors and advanced fuel systems. These companies are pushing the boundaries of efficiency, safety and scalability. SMRs, for example, can be built in factories, deployed quickly and located near energy-intensive sites such as data centers. They also have passive safety systems and long refueling cycles. Companies like Oklo are leading the way in this field and are showing how innovation can reshape the future of nuclear energy.

To what extent is the success of the ETF or its companies dependent on the uranium priceprice, and how is this dependence managed or diversified?

About 60% of the ETF is allocated to uranium producers, which naturally benefit from higher prices as they increase margins and production incentives. However, the rest of the portfolio is less linked to uranium prices. Midstream companies make their money from the construction and maintenance of nuclear power plants, so their revenues are more dependent on project activity than on commodity costs. Innovators developing new reactor technologies or fusion solutions are driven by technological progress and political support rather than commodity cycles.

Which global trends will be the most important growth drivers for the nuclear energy and uranium industry over the next five years?

Technology is currently the main driver of nuclear energy growth as demand for data centers increases and large technology companies look for reliable, low-carbon energy. Governments are also acting decisively, recognizing the importance of nuclear power for energy security and decarbonization. Political momentum is strong as the US, Europe and Asia increase their support. In the US, President Trump explicitly called for more favorable regulations from the Nuclear Regulatory Commission in his executive orders in May, bolstering prospects for faster project approvals and investment growth.

In many countries, nuclear energy has A difficult image for a long time. Are you currently observing greater acceptance? If so, what impact would this have on the investment environment?

Yes, the mood is clearly changing. The restart of Three Mile Island, the site of the 1979 accident that shaped public fear, is a symbol of the rebirth of nuclear energy. The CEO of Constellation Energy has described it as just that. Japan is also turning back to nuclear energy, recommissioning reactors to reduce dependence on imported energy and cut emissions. This broader acceptance is attracting more capital into the sector and expanding the investment universe across established and new nuclear technologies.

How do you see the role of nuclear energy compared to renewable energies in the context of decarbonization? Will increasingly seen as a supplement or a central pillar?

The world needs a lot more energy, especially as data centers are creating enormous new demand. The question is how this demand can be met sustainably. Nuclear energy is emerging as an important part of the answer. The right energy mix will vary by region and application. For example, Denmark’s wind-heavy model works well there, but countries building large-scale data center infrastructure cannot rely on renewables alone. In the US, hydrogen fuel cells and small modular reactors are gaining traction as complementary solutions.

In your opinion, what negative scenarios could seriously affect the positive expectations in the nuclear industry?

Some risks could disrupt the positive momentum. Russia remains a major player in uranium conversion, leading to geopolitical challenges and problems in the supply chain. Any disruption there could impact availability and pricing. Election cycles also bring uncertainty, as the expansion of nuclear energy requires long-term political continuity and the support of both parties. Finally, delays in the approval of projects or safety-related incidents, even if isolated, could quickly dampen sentiment and slow progress in an otherwise strongly positioned industry.

In your opinion, which three favorites areindispensable in your opinion?

Three outstanding names this year are Cameco, Centrus Energy and Oklo. Cameco, a leading uranium producer, represents the strength of the upstream segment. Centrus Energy is active in the midstream segment, where it enriches uranium and meets the demand for fuel for advanced reactors. Oklo is an innovative company developing next-generation small modular reactors. All three companies have performed strongly this year, demonstrating the value of a diversified holding across the nuclear energy value chain, from feedstock production to advanced technology. While investing in individual stocks allows for a focused, conviction approach to a theme, a diversified strategy can help manage concentration risk and position investors to benefit from companies that could emerge as market leaders over time.

Thank you very much.

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Mobeen Tahir
Director, Macroeconomics and Thematic Research, WisdomTree

Mobeen is a member of WisdomTree’s research team, where he focuses on a variety of asset classes to provide strategic and tactical insights on global markets and investment products. Prior to joining WisdomTree in December 2018, Mobeen worked at Willis Towers Watson as an investment consultant, advising institutional clients and their internal fund businesses on asset allocation and portfolio construction, with a research focus on equities and multi-asset smart beta. Mobeen holds a BSc (Hons) in Accounting and Financial Management from Loughborough University and an MSc in Accounting and Finance from the London School of Economics and Political Science. He is also a CFA charterholder.

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¹WisdomTree, Morningstar, Bloomberg. All data as of 30.09.2025 and based on the internal classification of thematic funds by WisdomTree. Performance is based on monthly returns from Bloomberg and Morningstar.

²WisdomTree, Bloomberg, data as of 29.10.2025