An investment in VanEck Uranium and Nuclear ETF (NLR 4.84%) or Vanguard Energy ETF (VDE +1.57%) represents a choice between a specialized focus on the nuclear fuel cycle and broad exposure to traditional fossil fuels.
While both funds operate within the energy sector, they target distinct subsectors with differing risk profiles and market drivers. The VanEck fund provides a concentrated play on nuclear power and uranium mining, whereas the Vanguard fund tracks the wide-reaching domestic oil and gas market.
Snapshot (cost & size)
| Metric | VDE | NLR |
|---|---|---|
| Issuer | Vanguard | VanEck |
| Share price | $150.44 (as of 2026-07-02) | $114.93 (as of 2026-07-02) |
| Expense ratio | 0.09% | 0.52% |
| 1-yr return (as of July 2, 2026) | 26.9% | 8.7% |
| Dividend yield | 2.7% | 2.7% |
| Beta | 0.43 | 0.84 |
| AUM | $11.8 billion | $4.2 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Vanguard fund is the more affordable option for long-term holders, featuring an expense ratio of 0.09% compared to 0.52% for the VanEck fund. Despite the difference in costs, both ETFs currently offer an identical 2.7% dividend yield.
Performance & risk comparison
| Metric | VDE | NLR |
|---|---|---|
| Max drawdown (5 yr) | (26.6%) | (30.5%) |
| Growth of $1,000 over 5 years (total return) | $2,328 | $2,433 |
What’s inside
VanEck Uranium and Nuclear ETF focuses on the nuclear energy ecosystem, holding a lean portfolio of 29 companies. Its sector exposure is diversified across energy at 45%, utilities at 38%, and industrials at 15%, with the balance in technology. Largest positions include Cameco Corp (CCJ 3.75%) at 8.2%, Constellation Energy Corp (CEG 2.11%) at 8.1%, and BWX Technologies (BWXT 4.06%) at 6.4%. The fund was launched in 2007. VanEck Uranium and Nuclear ETF has paid $3.17 per share over the trailing 12 months, which, on its recent ~$114.93 share price, works out to a 2.7% yield.
Vanguard Energy ETF tracks the MSCI U.S. Investable Market Index (IMI)/Energy 25/50, providing broad exposure to the energy sector. Its portfolio is almost exclusively dedicated to the energy sector, at over 99%, with a heavy tilt toward oil and gas giants. Its largest positions include Exxon Mobil Corp (XOM +2.23%) at 21.9%, Chevron Corp (CVX +1.66%) at 14.1%, and ConocoPhillips (COP +2.56%) at 5.8%. The fund was launched in 2004. Vanguard Energy ETF has paid $4.03 per share over the trailing 12 months, which, on its recent ~$150.44 share price, works out to a 2.7% yield.
Which fund is the better buy?
Both VDE and NLR are energy funds, but they provide access to different parts of the energy market.
The Vanguard Energy ETF is heavily focused on oil and gas, with its top three holdings accounting for more than 40% of its portfolio. The fund also focuses almost exclusively on U.S.-listed stocks and is heavily skewed toward value style stocks.
The VanEck Uranium and Nuclear ETF provides access to the growing nuclear energy sector, which appeals to both energy bulls and those seeking renewable energy exposure. NLR is more geographically diverse than VDE, with just 52% of holdings in the U.S. and nearly 27% in Canada and Australia, which are important uranium-producing nations. NLR is also skewed toward small caps, at 41% of its portfolio, compared to 13% for the Vanguards.
Both have a good macro case for investing. The Vanguard Energy fund is positioned for the expectation that fossil fuels will remain essential, while the Iran war will raise prices, benefiting producers. The VanEck benefits from advances in smaller reactors, which come at a time when data center energy demand is creating a true market for small reactors. It also has the tailwind of global warming, renewing a push for nuclear energy worldwide.
So, how to decide which energy fund to invest in? Performance.
VDE has had a great 52 weeks compared to NRL, but NLR’s performance glows over the longer term. The VanEck fund has returned 28.1%, 20%, and 11.8% annualized over the 3-, 5-, and 10-year look-backs, respectively. Those outpace VDE, which has returned 13.4%, 18.7%, and 8.4% over the 3-, 5-, and 10-year time frames, respectively.
For long-term energy investors, NLR gets the nod in 2026.
For more guidance on ETF investing, check out the full guide at this link.
Source: Original Article
