Better Energy ETF: VanEck's Nuclear-Focused NLR vs. State Street's XOP Oil and Gas Fund
State Street's oil and gas fund surged 43.6% in one year while the nuclear fund declined 24.8%, yet both delivered similar five-year growth.
Overview
The State Street SPDR S&P Oil & Gas Exploration & Production ETF (NYSEMKT:XOP) provides broad, equal-weighted exposure to fossil fuel extractors, while the VanEck Uranium and Nuclear ETF (NYSEMKT:NLR) targets nuclear power generation and uranium miners.
Investors choosing between these funds are essentially weighing different segments of the energy landscape. While the State Street fund focuses on traditional fossil fuel exploration and refining, the VanEck fund tracks the global nuclear fuel cycle and nuclear-derived electricity. Both are liquid, established options for investors seeking targeted energy thematic exposure. Subsequent mentions will refer to these as the State Street fund and the VanEck fund.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.