Investing in uranium with ETFs

Article Excerpt

Uranium prices have retreated lately but are still at 16-year highs. The gain has been fuelled by rising demand and constrained supply. Demand growth is supported by several factors: commitments provided by major world governments to increase the use of uranium in electricity production; the large number of new reactors continuing to be developed in China; interest by U.S. big tech firms in using nuclear power to meet accelerating demand from AI datacentres; and the restarting of numerous mothballed reactors in Japan. Below we highlight two ETFs that aim to provide investors with access to companies that mine, enrich, or hold physical uranium. In the supplement on page 119, we discuss in more detail the future prospects for the uranium market. SPROTT URANIUM MINERS ETF $45.21 (New York symbol URNM; TSINetwork ETF Rating: Aggressive; Market cap: $1.7 billion) aims to track the North Shore Global Uranium Mining Index. Stocks are weighted based on their market value, with a cap of 15% per individual holding…