Nuclear energy investors are well aware of the allure of NuScale Power. The company has a clear advantage over its small modular reactor (SMR) peers as the only company with a design approved by the U.S. Nuclear Regulatory Commission (NRC).
That hasn’t impressed Cathie Wood much. While NuScale Power appears in numerous exchange-traded funds, none of the Ark Invest ETFs count the SMR maker as one of their holdings.
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But that’s not to say that Ark Invest is completely averse to nuclear energy. In fact, several of its ETFs recently loaded up on shares of two prominent nuclear stocks.
X-Energy and Oklo supercharged several Ark Invest ETFs this week
Shining brightly on the Ark Invest radar, shares of SMR designer and nuclear fuel producer X-Energy (NASDAQ: XE) found their way into the Ark Innovation ETF (NYSEMKT: ARKK) on Tuesday, Oct. 22, when the fund picked up 292,022 shares. On the same day, the Ark Autonomous Tech & Robotics ETF (NYSEMKT: ARKQ) bought 126,437 shares, and the Ark Space & Defense Innovation ETF (NYSEMKT: ARKX) picked up 66,436 shares. Assuming these ETFs bought X-Energy stock at the average of its high and low on Tuesday — $10.48 — the Ark Invest funds invested about $5.1 million in total.
The buying spree continued on Wednesday as well, with the Ark Autonomous Tech & Robotics ETF and Ark Space & Defense Innovation ETF adding 134,201 and 66,146 shares, respectively — valued at about $2.2 million.
Not as substantial as the buys of X-Energy, Oklo stock also popped up on Ark Invest’s buy list. On Tuesday, the Ark Autonomous Tech. & Robotics ETF picked up 150,998 shares. With Oklo stock trading between $26.36 and $28.20, Ark Invest’s purchase was valued at around $4.1 million.
Should you follow Cathie Wood’s lead and charge up your portfolio with X-Energy and Oklo?
While Cathie Wood’s endorsement of both X-Energy and Oklo is noteworthy, there’s rampant risk in blindly following other investors’ buying activity. On their merits, though, X-Energy and Oklo stocks are certainly worth considering for those seeking exposure to nuclear energy.
As X-Energy advances construction of its nuclear fuel production facility, it offers an opportunity that extends beyond SMR development. Similarly, Oklo is developing its own nuclear fuel recycling business and an isotope production facility, broadening the company’s reach beyond SMRs.
