The global nuclear power industry is expected to rise from $32.44 billion to $38.82 billion by 2030, representing roughly a 20% growth. One of the best ways to tap into that growth could be by investing in Uranium, particularly Uranium ETFs. With that said, here’s a look at 8 of the best Uranium ETFs you can buy now.
Best Uranium ETFs
Sprott Uranium Miners ETF (NYSEARCA: URNM)
Sprott Uranium Miners ETF is an exchange-traded fund investing in companies that produce, develop, and explore uranium.
The fund exposes its investors to the global uranium mining industry by providing results that correspond to North Shore Global Uranium Index’s total return performance.
In terms of its performance, the Sprott Uranium Miners ETF has returned roughly 37% over the past three years, which is pretty good.
The fund was launched in 2010 and is managed by Sprott Asset Management LP. It currently has $826.47 million worth of assets under its management and has 38 stocks in its portfolio.
Its major holdings include National Atomic Co Kazatomprom JSC ADR (15.06%), Sprott Physical Uranium Trust Units (14.01%), Cameco Corp (13.87%), NexGen Energy Ltd (5.64%), and Uranium Energy Corp (5.36%).
It’s worth noting that URNM offers no dividends but has reported a 139.19% increase in revenue over the last three years.
Its top sectors are Energy (91.29%) and Basic Material (8.76%).
Global X Uranium ETF (NYSEARCA: URA)
Global X Uranium ETF(URA) is an exchange-traded fund that tracks a market-cap-weighted index of global uranium producers, including exploration, mining, and equipment manufacturing companies for nuclear and uranium industries.
The fund invests in various stocks across the oil, energy, gas, and uranium ore sectors.
Its goal is to replicate as closely as possible the performance of the Solactive Global Uranium & Nuclear Components Total Return Index.
Currently, the fund’s top holdings include Cameco Corporation (21.10%), Sprott Physical Uranium Trust Units (8.92%), National Atomic Co Kazatomprom JCS ADR (6.28%), and NexGen Energy Ltd (6.12%).
Launched in 2010, Global X Management Company LLC manages the fund with a net expense ratio of 0.69%.
It holds 53 stocks in its portfolio and total assets under management of $1.50 billion. URA has a dividend yield of 0.76% and an annual dividend payout of $0.15.
The ETF’s top sectors are Energy (68.44%), Industrials (16.5%), and Basic Materials (11.06%).
Horizons Global Uranium Index ETF (TSX: HURA)
Managed by Horizons ETFs Management (Canada) Inc, Horizons Global Uranium Index ETF is the first exchange-traded fund in Canada that offers its investors direct exposure to the uranium sector.
It has up to 25% of its portfolio with exposure to the price of uranium. HURA was created to track the Solactive Global Uranium Pure-Play GTR Index.
The fund has an expense ratio of 0.85% and has total assets under management of CA $50.13 million with 34 holdings in its portfolio.
Its top holdings include Cameco Corporation (21.85%), Yellow Cake Plc Ord (21.11%), NAC Kazatomprom JSC (17.96%), and NexGen Energy Ltd (5.88%).
The fund’s top geographic exposures are Canada (36.4%), the United Kingdom (21.1%), and Khazakstan (18%). It has a dividend yield of 1.46% with an annual payment of $0.32.
iShares MSCI Global Energy Producers ETF invests in companies involved in energy production, including those that operate in the nuclear energy and uranium industries.
This fund seeks to replicate the performance of the MSCI ACWI Select Energy Producers Investable Market Index (IMI) and is managed by BlackRock.
This ETF has total assets under management of approximately $121 million and has 215 holdings in its portfolio.
Its top holdings include Exxon Mobil Corporation (16.33%), Chevron Corporation (11.90%), and Shell Plc (7.59%).
The fund’s top geographic exposures include the United States (55.63%) and the United Kingdom (11.40%), and Canada (8.17%).
The fund has an expense ratio of 0.39%, which is very good as far as ETFs go.
It also boasts a reported total return increase of 41.59% and a dividend yield of 5.01% with an annual payout of $1.17.
VanEck Uranium+Nuclear Energy ETF (NYSEARCA: NLR)
The VanEck Uranium+Nuclear Energy ETF is an exchange-traded fund investing in uranium production and nuclear energy industry services.
This fund, managed by VanEck Associates Corporation and launched in 2006, tracks the performance of the MVIS Global Uranium & Nuclear Energy Index (MVNLRTR) and seeks to replicate its results as closely as possible.
The fund’s total assets under management are approximately worth $54.2 million, with 25 holdings in its portfolio.
The top holdings are Dominion Energy Inc (8.32%), Public Service Enterprise Group Inc (8.08%), Constellation Energy Corporation (6.44%), Entergy Corporation (6.32%), PG&E Corporation (6.14%), Cameco Corporation (5.65%).
It has an annual dividend yield of 1.94% and a dividend rate of $1.10.
Its net expense ratio is 0.60%, and its holdings are diversified across various sectors and countries and are rebalanced quarterly.
The fund’s top sectors are Utilities (67.06%), Energy (25.67%), and Industrials (5.30%).
SPDR S&P Metals & Mining ETF (NYSEARCA: XME)
Launched in 2006 and managed by State Street Global Advisors, the SPDR S&P Metals & Mining ETF is an ETF that tracks the S&P Metals & Mining Select Industry Index and seeks to replicate its results.
The index is made up of companies in the metals and mining sector.
This includes companies involved in copper, iron, and steel production and oil, gas, and coal production.
The fund’s total assets under management of $1.92 billion, and it holds 35 stocks in its portfolio. Its top holdings are Uranium Energy Corp (5.12%), Cleveland-Cliffs Inc (4.71%), Royal Gold Inc (4.62%), and Newmont Corp (4.61%).
The ETF has a dividend yield of 1.66%, an annual payout of $0.82, and an expense ratio of 0.35%.
Year to date, it has a total return increase of 9.71%. The fund’s top sectors are Materials (72.98%) and Energy (18.22%).
Domiciled in the United States of America, Direxion Shares ETF Trust – Direxion Daily Metal Miners Bull 2X Shares is an exchange-traded fund managed by Rafferty Asset Management, LLC.
It seeks to replicate as closely as possible 2x the daily results of the S&P Metals & Mining Select Industry Index.
Launched in 2013, the fund amplifies investors’ exposure to the metals and mining sector with leverage. It also has some interest in the uranium sector.
The ETF has an expense ratio of 1.07% and has no dividends. The fund has a portfolio with 39 stock holdings, with its total assets under management at $7.29 million.
Its top holdings are Dreyfus Government Cash Mgmt Instl (13.43%), GOLDMAN (5.32%), S&P Metals And Mining Select Industry Index Swap (4.68%), Goldman Sachs Sterling FixInc Port Inc (4.64%), and Uranium Energy Corp (4.15%).
The fund’s top sectors are Basic Material (72.99%), Energy (18.21%), and Industrials (8.8%).
Amplify Inflation Fighter ETF (NYSEARCA: IWIN)
The Amplify Inflation Fighter ETF (CFLY) is an exchange-traded fund that seeks to expose investors to a portfolio of assets that can perform well when inflation arises, including uranium exposure.
This fund was launched in 2020 and is managed by Amplify ETF trust.
The fund’s current assets under management are worth $9.77 million, with an expense ratio of 0.85%.
Its top sectors include Real Estate (32.94%), Energy (22.65%), Basic Material (19.01%), and Consumer Cyclical (17.37%).
With 63 holdings in its portfolio, the fund’s top holdings include Invesco Shrt-Trm Inv Gov&Agcy Instl (11.69%), Micro Gold Future Feb 23 (9.45%), Mini Soybean Future Mar 23 (4.16%), Bitcoin Future Jan 23 (3.25%), Texas Pacific Land Corp (2.94%), and Uranium Energy Corp (2.63%).
Are Uranium ETFs a Good Investment?
As things stand, we’re unsure how the market will pan out this year.
Tons of analysts suggest the market might bounce back this year. In contrast, a slew of analysts predicts the opposite.
But considering how well Uranium performed despite the market’s downturn in 2022, Uranium ETFs could be a good investment in 2023, even if we go through another downturn this year.
While the market crashed in 2022, many commodities crashed with it.
Yet, Uranium held strong and posted positive returns at the end of the year, which in itself speaks volumes about Uranium’s global outlook.
Uranium’s positive return was primarily due to its demand, as nuclear power currently produces 10% of the world’s electricity, and Uranium is a key facet of the nuclear power industry.
With that said, as long as nuclear power continues to produce a large chunk of the world’s electricity, Uranium will continue to be in demand, which should keep its price solid.
And if Uranium performs well, its ETFs are likely to follow suit.
However, it’s important to understand the risks and rewards associated with Uranium ETFs before investing.
For instance, Uranium prices can be volatile, and as a result, Uranium ETFs can be subject to market fluctuations and other risks.
Furthermore, these ETFs are usually subject to management and other fees, which can reduce returns.
That’s why it’s in your best interest to put your money in an ETF with a low expense ratio if you’re looking to invest in Uranium ETFs.
As with any investment, it is essential to research and consider all potential risks and rewards.
FAQs
What Is The Best Way To Invest In Uranium?
The best way to invest in uranium is through exchange-traded funds (ETFs) specializing in uranium investments. ETFs provide investors a diversified, low-cost way to gain exposure to the uranium market. In addition to that, investors can also purchase stocks in uranium companies, such as Cameco and Uranium Energy Corp.
Will Uranium Stocks Go Up In 2023?
Here’s the thing, while it’s possible to make educated guesses about the direction of certain assets and equities, it is impossible to predict whether uranium stocks will go up or down in 2023. However, considering the demand for nuclear power, uranium scarcity, and geopolitical factors, we wouldn’t bet against Uranium doing well in 2023.
What Is The Best Uranium ETF?
It’s hard to say what the best Uranium ETF is, as many picks could fit that description, but the Global X Uranium ETF is highly rated among investors as a must-have play.
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