Top Trends for 2024: Selecting ETFs with the Highest Potential Yields
Investing Beyond AI: The Rise of Nuclear Energy and Energy Infrastructure Megatrends
While Artificial Intelligence (AI) continues to dominate thematic investing in 2025, other megatrends such as nuclear energy and energy infrastructure offer compelling investment opportunities. These trends are supported by broader geopolitical and economic trends, making them attractive options for investors.
Uranium and Nuclear Energy
One such opportunity lies in the uranium and nuclear energy sector. The demand for uranium is on the rise due to a nuclear revival driven by the need for stable, low-carbon energy. Cameco Corp (NYSE: CCJ), one of the world’s largest uranium producers, is considered a key play in the long-term nuclear power growth trend. Although specific uranium ETFs were not named in the analysis, many ETFs track uranium miners and nuclear energy equities, and Cameco is a frequently held stock in such ETFs.
Power Grids and Energy Infrastructure
Investment in energy infrastructure, including power grids, remains important to mitigate energy scarcity risks. While clean energy ETFs (solar, wind, renewables) have seen outflows and less popularity recently due to interest rate and policy uncertainties, dedicated "Sustainable Global Infrastructure" funds, such as those managed by BlackRock, focus on energy infrastructure upgrades, which would include power grids.
Defense and Energy Security
Defense and energy security ETFs have also seen significant inflows in 2025, driven by geopolitical factors and increased government spending. While these ETFs focus mostly on defense technology and companies, some energy security aspects can overlap with defense infrastructure.
Investing Through Theme ETFs
These megatrends can be invested in through theme ETFs, which cover a broad spectrum in the respective sector and enable investing without the risk of individual stocks. However, investors should be cautious when betting on trend ETFs, as they can be subject to volatility and may not always deliver the expected returns.
In summary, while AI continues to dominate thematic investing, these other megatrends like nuclear energy and energy infrastructure offer promising investment opportunities. Investors are currently betting on these trends, which have delivered solid returns in the past and could continue to do so in the future. However, chasing every trend might not be advisable, and investors should conduct thorough analysis before making any investment decisions.
- Artificial Intelligence (AI) might not be the only sector offering attractive investment opportunities in 2025, as the trends in nuclear energy and energy infrastructure, such as uranium production and power grid upgrades, present compelling options.
- The uranium and nuclear energy sector, like Cameco Corp (NYSE: CCJ), and energy infrastructure investments, such as those focused on power grids managed by BlackRock, can be included in thematic ETFs, allowing investors to diversify their portfolios while avoiding the risks associated with individual stocks.
