Van Eck Adding Nuclear Energy ETF

by: Roger Nusbaum June 21, 2007    

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According to an article on the Resource Investor website, Van Eck has a nuclear energy ETF in the works under its Market Vectors brand.

It looks as though the fund will have uranium miners, nuclear energy producers and everything in between.

I tend to think these very narrow ideas can be a good thing. When it comes to very narrow themes (like uranium, exchanges or oil sands) it seems that non stockpickers are left out.

No one bats an eye if a do-it-yourselfer buys shares of Cameco (CCJ) with 2% of its portfolio, but if someone buys the HealthShares Metabolic Endocrine Disorders ETF (HHM), with 2%, Jack Bogle writes an op-ed in the Journal.

That someone can learn a lot about one small-ish industry, but still not want to take single stock risk seems more than plausible. I'm not sure that an investment product with ten global exchanges, or seven Australian banks can be an ETF, but the name of the product means a lot less than what the product owns.

I will concede that it seems unlikely that too many investment companies will take the risk that goes with something like this, but maybe there will be another company that does take these risks like HealthShares does.

There are probably one or two very narrow themes that interest you for whatever reason. That you might not think of yourself of a stockpicker doesn't mean you can't add one or two stocks to your portfolio.

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