Share-split context: A reverse split was recorded on Jul 1, 2013 with coefficient 0.333333. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.

Understanding the VANECK URANIUM AND NUCLEAR ETF (NLR)

The VANECK URANIUM AND NUCLEAR ETF (NLR) is an exchange-traded fund designed to provide exposure to the uranium and nuclear energy sectors. This ETF focuses on companies involved in nuclear power and uranium production.

What this ETF is trying to do

NLR seeks to track the performance of companies within the nuclear energy industry. Based on its top holdings, the fund invests in various energy corporations and mining companies. Because it focuses on a specific sector, its performance is tied to the uranium and nuclear energy markets.

Top Holdings:

• Constellation Energy Corp (8.97%)

• Cameco Corp (8.03%)

• Fortum Oyj (7.25%)

• Public Service Enterprise Group Inc (6.56%)

• BWX Technologies Inc (5.45%)

• Nexgen Energy Ltd (5.33%)

• Uranium Energy Corp (5.08%)

• Paladin Energy Ltd (4.85%)

• Denison Mines Corp (4.75%)

• CGN Power Co Ltd (4.71%)

*Note: This is a partial list of the fund's holdings. Holdings can change over time.*

What the numbers show

The performance data shows different results depending on the time frame:

• Year-to-Date (YTD): The price return is approximately -15.24%. The total return is also approximately -15.24%.

• One-Year: The price return is approximately -27.75%. The total return is approximately -25.97%.

• Three-Year: The price return is approximately 52.60%. The total return is approximately 64.70%.

• Five-Year: The five-year total return is approximately 115.42%.

It is important to note that price return only measures the change in the share price, while total return includes the impact of distributions.

Income and distribution explanation

NLR has a distribution yield of approximately 3.01%. This means the cash distributions represent about 3% of the current share price. The trailing distributions are approximately $3.17 per share.

The distribution frequency is described as "irregular" or "less frequent," with only one payout recorded in the last 12 months. When looking at income, it is important to remember that a high yield does not guarantee that the share price will stay stable.

NAV erosion explanation

This ETF has a severe erosion-risk flag. This means that StockValueFinder's screening rules detected significant price deterioration and a weak erosion score. The fund has an erosion score of 30, which is labeled as "significant price erosion."

Additionally, the fund has a history of a reverse split. In a reverse split, multiple old shares are combined into fewer new shares, which causes the quoted per-share price to rise mechanically. This mechanical increase does not restore lost investment value.

The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

Pros

• Strong Long-Term Total Returns: The fund has shown significant total returns over three-year and five-year periods.

• Sector Exposure: It provides a way to invest specifically in the uranium and nuclear energy industry.

Cons

• Recent Price Decline: The fund has experienced negative price returns over the last year and year-to-date.

• Erosion Risk: The fund carries a severe erosion-risk flag and shows significant price erosion.

• Irregular Income: Distributions are not frequent or regular.

Beginner takeaway

NLR offers specialized exposure to the nuclear energy sector and has shown strong growth over several years. However, recent data shows a significant decline in share price. Investors should be aware of the severe erosion-risk flag and the fact that recent returns have been negative. Always remember that high distribution yields can exist even when a share price is falling.