#7 - Global X Uranium ETF (NYSEARCA:URA)
A uranium-focused ETF is an ideal way to invest in the uranium sector when you don't want to invest in one particular company. The Global X Uranium ETF (NYSEARCA: URA) is one of the more popular uranium ETFs, with over $2.77 billion in assets under management (AUM). For perspective, the company had around $1.8 billion in AUM in January 2024. The money comes from both institutions and retail investors.
The fund is benchmarked to the Solactive Global Uranium Index, which is weighted by market cap. As of March 2024, the fund has 50 holdings, including many of the names in this presentation, including Uranium Energy, Cameco Corporation and NextGen Energy. Approximately 60% of the fund's geographic exposure is in Canada and the United States, with an additional 13% from Australia.
The ETF is up 44% in the last 12 months and is holding on to a 2.6% gain so far in 2024. Another appealing feature of the fund is a relatively low net expense ratio of just 0.69%.
About Global X Uranium ETF
The Global X Uranium ETF (URA) is an exchange-traded fund that mostly invests in stocks based on a particular theme. The fund tracks a market-cap-weighted index of companies involved in uranium mining and the production of nuclear components. URA was launched on Nov 4, 2010 and is managed by Global X.
- Current Price
- $27.97
- Consensus Rating
- Buy
- Ratings Breakdown
- 2 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $27.97 (0.0% Downside)
If you still need some convincing about the growth potential for uranium stocks, consider this. It's one thing for retail investors to start piling into certain stocks and sectors. That's what the meme stock movement was all about. However, in the case of uranium, hedge funds are beginning to pile money into uranium stocks.
What they see is a simple case of supply and demand. The Kazatomprom, which is the world's largest uranium supplier, recently cut its 2024 supply forecast by approximately 14%. It also warned that this slowdown may extend into 2025.
Just look at what's happening with Bitcoin as its halving event approaches. When the supply of any asset is cut with demand staying the same or increasing, the underlying asset's price has only one direction to go.
That's why the last two years may be only the beginning of a multi-year cycle in uranium stocks. And many of the stocks in this presentation are priced in a way that can allow you to take a sizable position for not a lot of capital.
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