5 Best Nuclear ETFs to Buy Now

2. Utilities Select Sector SPDR ETF (NYSEARCA:XLU)

Expense Ratio: 0.10%

The Utilities Select Sector SPDR ETF (NYSEARCA:XLU) invests in utility companies of varying market capitalizations. The ETF tracks the performance of the Utilities Select Sector Index and the S&P 500 Index and employs a full replication technique. The Utilities Select Sector SPDR ETF (NYSEARCA:XLU) has an expense ratio of 0.10% and a top 10 holdings concentration of 62.61%.

One of the top holdings of the Utilities Select Sector SPDR ETF (NYSEARCA:XLU) is NextEra Energy, Inc. (NYSE:NEE). NextEra Energy, Inc. (NYSE:NEE) is one of the largest operators of nuclear facilities in the United States. As of June 30, Fisher Asset Management owns roughly 16.2 million shares of NextEra Energy, Inc. (NYSE:NEE) and is the largest shareholder in the company. The investment covers 0.88% of Ken Fisher’s 13F portfolio.

On August 18, Morgan Stanley analyst Stephen Byrd raised his price target on NextEra Energy, Inc. (NYSE:NEE) to $94 from $83 and maintained an Equal Weight rating on the shares.

Here is what asset management firm, ClearBridge Investments had to say about NextEra Energy, Inc. (NYSE:NEE) in its second-quarter 2022 investor letter:

“We increased our exposure to the energy transition during the quarter with new positions in Iberdrola (OTCPK:IBDSF), a Spanish-based integrated utility that is also one of the leading renewable energy developers in the world, and NextEra Energy, Inc. (NYSE:NEE), an integrated utility business with a regulated utility operating in Florida and the largest wind business in the U.S. The war has opened the eyes of the world that energy independence is critical. Renewables are for many countries the only way to get to the target. It is expected that existing renewable project pipelines will be executed faster, and more projects added to existing pipelines.

The energy transition would be extremely helpful for climate change and Iberdrola ranks well on our ESG matrix. NextEra, meanwhile, recently raised future earnings forecasts, citing a very favorable macro environment for rapid renewable generation expansion driven by decarbonization of the U.S. economy and the relative attractiveness of renewable generation in the context of high natural gas and power prices.”