Which Is the Better Energy ETF for the AI Era: State Street's XLE or VanEck's Nuclear NLR?
State Street's energy ETF delivered 39% returns over one year with a 0.08% expense ratio, while VanEck's nuclear-focused fund posted an 8.1% loss despite a higher dividend yield.
Overview
The State Street Energy Select Sector SPDR ETF (NYSEMKT:XLE) offers a lower-cost route to traditional fossil fuel giants, while the VanEck Uranium and Nuclear ETF (NYSEMKT:NLR) provides niche exposure to the global nuclear power ecosystem.
These two exchange-traded funds offer distinct pathways into the global energy landscape. While both funds target power generation and fuel sources, they differ significantly in their sub-sector concentrations, management costs, and historical volatility profiles. While the SPDR fund offers massive liquidity and a low-cost entry to fossil fuel majors, the VanEck fund provides a concentrated bet on the nuclear power renaissance and the uranium supply chain. This comparison examines how their different underlying philosophies affect total returns and portfolio risk.
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-yr 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.