As advisors consider tax-loss harvesting, nuclear energy ETFs are a good place to start. With nuclear energy ETFs down in recent months after a strong start to the year, investors can sell current positions to harvest losses and enhance exposure to the space.
Key Takeaways
- Advisors can sell underperforming nuclear energy ETF positions to capture capital losses to offset gains, while maintaining exposure to a constructive long-term policy tailwind.
- The Range Nuclear Renaissance Index ETF (NUKZ ) outperformed the VanEck Uranium and Nuclear ETF (NLR ) by over 1,100 basis points year to date through September 28, 2026.
- NUKZ holds $705 million in assets across ~50 holdings with a focus on advanced reactors and the full value chain. NLR holds $3.6 billion across ~25 top-heavy holdings concentrated in large utilities and major uranium miners.
Navigating Structural Trends in Nuclear Energy
Despite a very constructive policy background, nuclear energy ETFs have struggled recently as nuclear stocks got caught up in a broader AI momentum pullback. However, the sector remains poised for strength due to accelerating baseline demand from hyperscale data centers, breakthroughs in next-generation reactor deployments, and strong policy momentum in the U.S. and abroad for reactor deployment.
Advisors may consider selling positions in the VanEck Uranium and Nuclear ETF (NLR ) and reallocating to the Range Nuclear Renaissance Index ETF (NUKZ ). Both funds have seen drawdowns year to date through September 28. But NUKZ’s structural tilt has driven significant relative outperformance. It is outpacing NLR by over 1,100 basis points in 2026, potentially offering better long-term exposure to the space.
Both NLR and NUKZ offer access to the nuclear energy space; however, they provide unique exposures. The $705 million NUKZ captures the full nuclear energy value chain. In addition to uranium miners and utilities, NUKZ tilts toward advanced nuclear reactors, engineering and construction firms, component suppliers, and fuel cycle service providers.
Conversely, NLR, with $3.6 billion in assets, primarily targets large, mature global utilities operating nuclear power plants and major uranium producers.
NLR is much more top-heavy, holding only around 25 stocks. Its top 10 holdings represent 62% of total fund assets. Meanwhile, NUKZ distributes its allocations across about 50 stocks, with about 36% of assets in the top 10, offering broader diversification.
Executing Tax-Loss Harvesting
While incurring investment losses is never the goal, capital losses can offer a silver lining by helping offset tax liabilities. Tax-loss harvesting allows advisors to sell positions at a loss to offset capital gains of up to $3,000 of ordinary income annually, carrying forward any remaining balance into future tax years.
To complete the strategy, proceeds are immediately reinvested into a complementary fund like NUKZ. Because NUKZ tracks a broader underlying index and value-chain portfolio than NLR, it allows advisors to maintain uninterrupted market exposure while navigating IRS wash-sale rules.
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vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for NUKZ, for which it receives an index licensing fee. However, NUKZ is not issued, sponsored, endorsed, or sold by VettaFi. VettaFi has no obligation or liability related to the issuance, administration, marketing, or trading of NUKZ.
