Nuclear and Defence ETFs Surge Ahead of Gold in 2025 Rally

Highlights:

• Nuclear and defence ETFs outperform gold in 2025, with Global X uranium and defence funds surging about 74% year-to-date, outpacing gold’s 36% rise.
• AI-driven energy demand boosts nuclear investments, as fund managers like Terra Capital double their uranium exposure to meet clean-energy needs for data centres.
• Defence spending and infrastructure play key roles in 2025’s megatrends, shifting investor focus from chip-makers to the physical backbone powering the AI ecosystem.

Big Moves Beyond Gold

At the time of writing, the investment spotlight is shifting away from gold to sectors tied to nuclear power and defence. The exchange-traded fund provider Global X Funds reports that its uranium- and defence-themed funds, including the Global X Uranium ETF (URA), are enjoying substantial year-to-date gains — eclipsing the returns seen in its gold-focused ETF. Meanwhile, gold producers remain strong on safe-haven demand and central-bank purchases, yet the broader momentum appears to favour sectors linked to the infrastructure underpinning artificial intelligence and security.

Why Nuclear & Defence Are Winning

Investment strategists point to two major drivers. First, nuclear energy is gaining traction as a large-scale, carbon-free power source — a critical advantage in an era of increasing data-centre and AI power needs. As one portfolio manager observes: “Nuclear is the only viable, large-scale, carbon-free energy source.”
Second, defence spending is rising in response to geopolitical tensions and new global security priorities. As the next wave of AI deployment shifts from chip-makers to the “physical layer” — data centres, grid systems, cabling and power networks — infrastructure and industrial players tied to defence and energy are reaping benefits.

What This Means for Investors

The dual themes of nuclear-power expansion and defence-technology investment have emerged as two of 2025’s dominant trends. Investors seeking to capitalise on this shift may consider ETFs or stocks aligned with uranium production, nuclear-component manufacturing or advanced defence systems. However, as with all thematic plays, timing, valuation and risk appetite remain key. For now, gold may headline the news — but the biggest winners may be elsewhere.

Trending in the Media

This thematic shift is covered by multiple outlets, including bespoke ETF-performance round-ups and analysis of nuclear-energy’s resurgence.

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