2 ETFs to Buy as Uranium Prices Soar

NYSE: URA | Global X Uranium ETF News, Ratings, and Charts

URA – A combination of a substantial rise in production and growing global demand has helped the uranium industry rebound this year. And, since uranium prices are expected to continue moving higher in the near term, we think energy ETFs exposed to uranium stocks Global X Uranium ETF (URA) and North Shore Global Uranium Mining ETF (URNM) should soar in price. Read on.

The COVID-19-pandemic-induced halt in the construction of new plants, a series of mine closures in Canada, and declining secondary supplies have limited the growth of the uranium industry. However, according to GlobalData, global uranium production is expected to grow at a 6.2% CAGR to 65.2kt by 2025. Resumption of production at Cigar Lake Canada, which accounts for 12-13% of the global uranium output, and several other mines, should drive  the growth.

Furthermore, last week the spot uranium price hit $35/lb for the first time in six years, when Sprott Physical Uranium Trust (SPUT) started buying and storing physical uranium in expectation of a sustainable recovery. The optimism surrounding the industry’s recovery is based on a combination of current demand from the world’s 445 currently operational nuclear reactors, which provide roughly 10% of global electricity, and the development of new reactors as demand for carbon-free electricity grows.

Given this backdrop, we think ETFs exposed to uranium stocks—Global X Uranium ETF (URA) and North Shore Global Uranium Mining ETF (URNM)—could be solid bets now because they are well-positioned to witness significant upside.

Global X Uranium ETF (URA)

URA provides exposure to a broad group of companies engaged in uranium mining and nuclear component production that are either pure-play or have significant absolute sales in the uranium sector. The fund has approximately $676.4 million in assets under management (AUM). URA’s major holdings include Cameco Corporation (CCJ), NexGen Energy Ltd (NXE), and Energy Fuels Inc. (UUUU).

URA has a 0.69%  expense ratio, which is higher than its 0.57% category average. URA has gained 98.4% over the past year and 26.6% over the past six months. The ETF pays $0.13 in dividends annually, which yields 0.56%. Also, it has a 1.18 five-year monthly beta.

URA closed yesterday’s trading session at $23.93 and is currently trading just 2.5% below its 52-week price high of $24.53. The ETF has advanced 26.6% over the past six months and has seen net inflows of $169.91 million during this period. URA’s NAV stood at $17.69.

URA’s POWR Ratings reflect this promising outlook. The ETF has an overall A rating, which equates to Strong Buy in our proprietary rating system.

URA has an A grade for Trade and Buy & Hold. Of the 114 ETFs in the A-rated Commodities ETF group, URA is ranked #15.

North Shore Global Uranium Mining ETF (URNM)

URNM provides access to a group of companies that engage in uranium mining, exploration, development, and production and companies holding physical uranium, uranium royalties, and other non-mining assets. It has approximately $368.1 million in AUM. URNM’s major holdings include CCJ, Uranium Energy Corp (UEC), and Denison Mines Corp (DNN).

URNM has a 0.85% expense ratio, which is more than the 0.57% category average. The ETF has gained 129.7% over the past year and 137.3% over the past nine months. It pays $1.10 in dividends annually, which yields 1.47%.

URNM is currently trading at $74.95, which is 2.5% lower than its 52-week price high of $76.87. The fund has advanced 28.8% over the past month and witnessed $8.11 million in  net inflow

It is no surprise that URNM has an overall A rating, which translates to Strong Buy in our POWR Ratings system. It also has an A for Trade Grade, Buy & Hold Grade, and Peer Grade. In addition, it is currently ranked #1 of 39 ETFs in the same group.


URA shares were trading at $24.55 per share on Tuesday morning, up $0.62 (+2.59%). Year-to-date, URA has gained 60.33%, versus a 21.58% rise in the benchmark S&P 500 index during the same period.


About the Author: Pragya Pandey


Pragya is an equity research analyst and financial journalist with a passion for investing. In college she majored in finance and is currently pursuing the CFA program and is a Level II candidate. More...


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