Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
ThinkAdvisor

Portfolio > ETFs

What Next for Japan’s Energy?

X
Your article was successfully shared with the contacts you provided.

Japan’s natural disaster has dramatically shifted the world’s view of nuclear energy. Countries like China, Germany, India, Switzerland and the United Kingdom are rethinking their nuclear energy plans.

The situation in Japan prior to the accident was as follows: nuclear power accounted for roughly 25 percent of Japan’s electricity. Imported energy, like petroleum, accounted for the bulk of Japan’s energy supply, while coal and natural gas made up around 35 percent of Japan’s energy supply.

Where will Japan obtain its future energy needs? The nation will need to rely on coal, natural gas and petroleum for its energy needs to make up for the losses at the Fukushima Daiichi nuclear plant. Six of the four reactors are irreparable and will be decommissioned.

Nuclear ETFs that own stocks within the sector like the Global X Uranium ETF (URA) and the Market Vectors Uranium+Nuclear Energy ETF (NLR) have been hit with a spell of volatility. Both nuclear ETFs have bounced off their recent drops, but the stability of future earnings is a big question.

ETFs that are likely to benefit from the fallout in nuclear energy stocks are the PowerShares Wilderhill Clean Energy ETF (PBW), Market Vectors Coal ETF (KOL), Sector SPDR Energy (XLE) and First Trust ISE-Revere Natural Gas Index Fund (FCG).


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.