Nuclear Power ETF: PKN

New Jersey Weighs Building Another Nuclear Plant, First Since 1973

- New York Times, April 18, 2008


The combination of increasing concern about greenhouse gas emissions and the rising price of oil has even one of the most densely populated states in the country looking towards nuclear power as a possible solution. The next catalyst may be around the corner with carbon caps promising to be a boon to the nuclear power industry.

Investors can gain low cost diversified exposure to the potential growth of the industry with the Invesco PowerShares Global Nuclear Energy Fund (NYSEArca: PKN). PKN tracks an index of 63 companies that are engaged in the nuclear energy industry with representation across reactors, utilities, construction, technology, equipment, service providers and fuels.

Top holdings include Areva (Paris: CEI.PA), Toshiba Corp. (TSE: 6502), British Energy Group PLC (LSE: BGY.L), Electricite de France S.A. (Other OTC: ECIFF), and Emerson Electric Co. (NYSE: EMR).

The index is rules-based and is rebalanced quarterly. The fund’s expense ratio is 0.75%.

For more information, see the PowerShares’ website.

If you are bearish on the future of nuclear energy, check out the KLD 400 Social Index Fund (Amex: DSI) which we profiled in March 2008. DSI excludes any company that generates material revenue from nuclear power.

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