Displaying items by tag: energy

The rise of artificial intelligence has sparked an unexpected boom in utility ETFs, driven by soaring electricity demand from power-hungry data centers supporting AI infrastructure. Funds like XLU, VPU, IDU, and FUTY have gained over 7% in the past year, outperforming the broader utility sector. 

Data centers already consume about 1.5% of global electricity, with the U.S. accounting for nearly half, and the International Energy Agency projects this demand to double by 2030. This surge positions electric utilities as critical enablers of the AI revolution, creating a long-term growth runway supported by regulated rate increases and infrastructure expansion. 

Investors have turned to utility ETFs as a way to gain exposure to companies powering the digital economy, particularly U.S. giants like NextEra Energy and The Southern Company. 

Finsum: As AI adoption accelerates, utility ETFs stand to benefit from a sustained and predictable rise in electricity demand.

Although the term “ESG” has become controversial and sometimes viewed as a marketing label, about 69% of institutional asset owners still report using it—primarily for consistency. Many prefer alternative labels: 57% use “sustainable investment,” 53% “sustainability,” and 52% “responsible investment.” 

ESG considerations now apply to an average of 44% of asset owners’ AUM globally, up from 42% last year. In 2025, 20% of respondents said they apply ESG to more than 75% of their portfolios, and 10% said ESG applies to 100% of their assets. 

Asset owners increasingly see ESG as aligned with fiduciary duty: 61% agree ESG supports that role, up from 53% in 2024. 

Finsum: The biggest barrier to broader ESG adoption is concern over impacts on investment returns or a lack of standardized data and reporting. 

IsoEnergy’s merger with Toro Energy adds the fully owned Wiluna uranium project in Western Australia to its portfolio, expanding its global footprint and resource base. The combined company will hold an estimated 55.2 million pounds of measured and indicated uranium resources, along with 4.9 million pounds inferred.

IsoEnergy CEO Philip Williams said the acquisition enhances the company’s position with a large, permitted project in a top uranium-producing region amid surging global nuclear demand. Toro shareholders will own about 7.1% of the new entity and gain exposure to IsoEnergy’s assets in Canada and the U.S., including the high-grade Hurricane deposit and Utah-based mines. 

The merger arrives as uranium markets strengthen, with global demand projected to rise roughly 30% by 2030 and double by 2040. 

Finsum: This merger could be a good opportunity for those looking to invest in nuclear energy or uranium. 

Uranium ETFs have gained traction as investor interest in clean energy and nuclear power—especially in the context of artificial intelligence’s energy demands—has grown. Although the uranium ETF market is still in its early stages, net inflows have been rising steadily, with equity-based ETFs dominating due to the lack of SEC-approved physical uranium funds. 

Major offerings like the Global X Uranium ETF (URA) and the Sprott Uranium Miners ETF (URNM) provide access to mining stocks and limited exposure to the Sprott Physical Uranium Trust (SPUT), which holds physical uranium but is structured as a closed-end trust. 

Canada remains the geographic hub for investable uranium stocks, and companies like Cameco dominate ETF holdings, while new entrants like the Roundhill and ProShares filings reflect continued market enthusiasm. 

Finsum: Until a true physical uranium ETF is approved, access remains indirect, and investors must weigh sector volatility and geopolitical risks.

Oil prices climbed as markets reacted to looming U.S. sanctions targeting Russian energy exports, signaling tighter global supply ahead. West Texas Intermediate surged over 2%, breaking above $68 per barrel after President Trump teased a major announcement on Russia and hinted at aggressive tariffs on countries like China and India that continue buying Russian oil. 

Analysts suggest these potential sanctions are offsetting concerns about rising OPEC+ output, especially as Saudi Arabia exceeded its production quota in June amid heightened geopolitical tensions with Iran. 

However, the rally was tempered by Trump's separate threat of a 35% tariff on select Canadian goods, though core energy imports under the USMCA will likely remain unaffected. Meanwhile, traders shrugged off the temporary production surge from Gulf producers, focusing instead on stable Saudi pricing to China and expected output curbs from OPEC+ starting October. 

Finsum: With sluggish global demand growth in 2025 the market may face a delicate balance between geopolitical supply shocks and muted consumption.