Better Clean Energy ETF: VanEck's Nuclear-Focused NLR vs. the iShares ICLN Targeting Renewables
2026-10-15 01:23
•Robert Izquierdo •The Motley Fool
••••••• •••••• Axe Cap view
Nuclear or Renewables: Which Clean Energy ETF Fits SA Investors?
VanEck’s nuclear-focused NLR pays better dividends but lags renewables-focused iShares ICLN, which offers broader exposure and growth.
South African investors looking at clean energy have two clear ETF choices: VanEck’s NLR with a 3.1% dividend, or iShares’ ICLN focused on renewables. NLR’s nuclear play is a double-edged sword; it provides steady income via utilities like CEG, but the sector’s heavy regulatory burdens and sensitivity to interest rates have punished performance recently, showing a 21.8% loss over the past year. Renewables in ICLN, on the other hand, have gained 11%, boosted by diversified holdings like BE (clean energy equipment) and FSLR (solar). The lower expense ratio also means less drag on returns. For South Africans, the rand’s volatility against the dollar will affect these ETFs, but renewables’ global momentum looks more promising. That said, if rising global uranium prices or policy shifts favour nuclear, NLR could rebound sharply. this is just our opinion and not financial advice
We’d prefer ICLN for exposure to broad clean energy growth with less risk, but keep a small position in NLR as a tactical bet on nuclear’s comeback. USD/ZAR movements should be monitored closely as they impact returns.
- NLR
- ICLN
- USD/ZAR
- Nuclear regulatory changes and interest rate hikes hitting NLR
- Rand weakening worsening dollar-based ETF returns
6/10
VanEck's NLR nuclear-focused ETF offers higher dividend yield (3.1%) but underperformed significantly with a 21.8% loss over the past year, while iShares' ICLN renewable energy ETF gained 11.0% with lower costs (0.38% expense ratio). The choice between them depends on investor priorities: NLR provides concentrated nuclear exposure but faces regulatory and interest rate risks, while ICLN offers broader diversification across 105 holdings in solar, wind, and clean energy equipment.
Our take is based on reporting first published by The Motley Fool.
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