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Nuclear sector a Buy after market panic

|Includes:VanEck Vectors Uranium+Nuclear Energy ETF (NLR), NUCL, PKN

 The threat of a catastrophic meltdown at four (of 55 in total) Japanese nuclear reactors has hit the sector hard. Shares of Uranium miners like Cameco and Australia's Paladin, utilities like Exelon and EDF in Europe, and integrated firms like Areva in France, all saw double-digit drops over the last week. A pure uranium fund, "U" on the TSX, dropped over 30%. The biggest nuclear sector ETF, NLR, dropped 22% before recovering somewhat and is now down 14% from its price last Thursday before the earthquake hit. 

But despite Japan's tragedy, the nuclear industry is not going away. If anything, with our global oil barrel at least half-empty, nuclear power has been experiencing a renaissance. President Obama re-affirmed the US' commitment to nuclear power the other day. Unfolding events in Japan will continue to cause turbulence in the sector but until there is a clearly better alternative energy, nuclear power is here to stay. 
Market Vectors' NLR ETF holds 26 firms offering a good mix of uranium miners, nuclear engineering firms, and nuclear utilities. Global exposure is also mixed: 30% Canada, 27% US, 18% Japan and the rest in Australia and France. A couple of other nuclear ETFs, iShares NUCL and Powershares PKN are more global and less miner-focussed. But they are much smaller in AUM. NLR also offer a better dividend at nearly 5%. 





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  archerETF Metrix NLR
 Category US Equity
 Benchmark S&P 500
 Total Holdings 26
 52 Week High $27.45
 Recent Price $21.23
 52 Week Low $17.73
 Avg Daily Volume 0.19 Million Shrs
 Avg Daily Volume ($) $4.14 Million
 Total Market Cap $201.30 Million
 ETF Annual Fee 0.66%
 ETF Trading Currency USD
 ETF FX Exposure C$ 30%/US$ 27%/Other
 Annual Volatility 30.88%
 Correlation to S&P 500 77.59%
 Return to Risk Ratio Not Available
 Use of Leverage No
 Use of Futures No
 6 month Return 8.48%
 1 Year Return -4.11%
 2 Year Return 35.22%
 3 Year Return -27.19%
 Dividend Yield (NYSE:TTM) 4.99%
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Stocks: NLR, PKN, NUCL