It’s official: nuclear power is now considered “green.” It’s no longer treated as a second-hand citizen in the ESG (environmental, social, and governance) universe.

Reuters reported that the European Union would label nuclear power infrastructure as a green investment.

A report prepared by the European authorities says: “The analyses did not reveal any science-based evidence that nuclear energy does more harm to human health or to the environment than other electricity production technologies.

Now, this is great news for the “economy of the future” trends that we have been discussing.

As a reminder, our mission here at the Financial Star is to inform you of the megatrends unfolding in the world today. By staying tuned to these developments, you can allocate your portfolios for maximum benefit.

And ESG is one of the biggest megatrends.

Now that the European Union is on board with nuclear power, what does it mean?

The US Will Follow

Expanding the role of nuclear power is on Joe Biden’s agenda. Only nuclear will help the US achieve its CO2 emission goals.

This is why we expect that the US will label nuclear power as “green” this year or next.

And this means a couple of things…

First, millions of dollars will follow into uranium exploration companies… nuclear waste solution firms… reactor manufacturers and operators… as part of Joe Biden’s $2.25-trillion infrastructure plan.

The plan calls for the development of new-generation nuclear reactors… and upgrading the country’s outdated power grid and other infrastructure.

The plan has been announced and will likely pass both the House and the Senate later this year.

Second, the US government will prioritize US-based companies that work in the nuclear area. For example (this is not a recommendation), NuScale, a company that builds small modular reactors, which are the future of nuclear. They are quick to build and easier to operate than their large counterparts.

As new investment opportunities in the nuclear area in the US appear, you’ll hear all about them from us. Remember that we’re constantly looking for new and amazing opportunities for you.

And speaking of new investment opportunities…

Clean Energy ETFs Will Add Nuclear Companies to Their Portfolios

The ESG area is evolving… and nuclear is a prime example.

Some ETFs that position themselves as ESG-friendly do not include nuclear power companies… or even explicitly say that they exclude those stocks.

But guess what… as the ETF providers catch up with the global consensus about nuclear power… they will start buying those companies and adding them to their portfolios. That’s good news for their investors.

And there’s a lot of buying power in those ETF providers’ hands… In the US only, ESG ETFs have almost $190 billion in assets under management. And they grew by over 200% in 2020, even despite the coronavirus pandemic.

The investment world is sending a clear signal: ESG is here to stay, and the companies that make it into ESG indexes might benefit from the inclusion.

But at the end of the day, it’s all about performance…

And clean energy ETFs have absolutely crushed it. Over the past year, the EIP Climate Tech Index has outperformed NASDAQ. While NASDAQ (light-green line in the chart) grew by 77%, the Clean Tech index (the dark green line) soared by over 213%.

Nuclear power companies are a perfect fit for an index like this and for the clean energy ETFs.

Soon everybody will be talking about them, in our opinion. And you have heard about this trend from us first.

So keep an eye on this space.

But this is only the beginning… there will be more news coming your way, and we will continue updating you on what the best investment opportunities are in the “trends of the future.”

Thank you for your loyal readership,

The Financial Star team