2023-11-18 12:00 |
The commodities market has been mixed in 2023. Some smaller commodities like orange juice, cocoa, sugar, and palm oil have surged to either an all-time or a multi-year high. Others, like soybeans, wheat, corn, and natural gas have retreated.
Uranium has been a shining star in the energy market as many Western countries invest in nuclear energy and as supply challenges remain. Most recently, a coup in Niger led to rising concerns about global supplies.
Uranium price has surged from last year’s low of $22 per pound to over $74, according to Cameco. Analysts believe that these prices will continue rising in the coming months amid a growing supply and demand mismatch.
The soaring uranium price has left many investors looking for ways to invest in it. Unlike popular commodities like crude oil, natural gas, corn, and copper, uranium is not widely offered by regular brokers. Its futures and options are also not available.
Therefore, investors have taken advantage of this rally to invest in the Uranium ETF (URA), which is provided by Global X, a company owned by Mirae Asset Management. URA ETF stock has soared to $28.06 and is nearing an all-time high of $29.60. It has soared by over 353% from its lowest point in 2020.
URA’s inflows have been in an uptrend this year. Its assets have jumped to over $2.35 billion after they rose by more than $235 million this year. Inflows have risen in seven of the past 11 months.
URA has done well because it holds stakes in some of the biggest companies in the biggest uranium mining companies in the world. Cameco, its biggest holding, is the leading publicly traded company in the world. A few months ago, the company said that it would reduce production because of mining challenges.
Other big companies in the fund are NexGen Energy, Uranium Energy Corp, Paladin Energy, and Denison Mines. The fund has an expense ratio of about 0.69%.
The other popular uranium ETF that is popular among investors is the Sprott Physical Uranium Trust, which invests and holds uranium. Its uranium is held by Cameco, Orano, and ConverDyn. It has an expense ratio of 0.72% and provides the biggest exposure to physical uranium.
The post URA: Here’s why Wall Street loves this Uranium ETF as prices surge appeared first on Invezz
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