Global X Funds today launched a new NYSE listed Uranium ETF. You’ve to give those guys credit for extremely well timed ETF launch dates. Looking at the various Uranium stocks out there one cannot help notice volume is flowing into the Uranium sector. Actually, I am pretty bullish on Uranium as we are probably witnessing the early stage of a Nuclear Renaissance. I have already started getting exposure to what might develop into the next big thing or put another way a potential ‘Uranium Turnaround’.
Although there is Van Eck’s NLR – Market Vectors Nuclear Energy ETF as another way to get broad and diversified exposure to the Uranium miners and the Uranium Industry, my best guess would be URA Global X’s new ETF will gain more traction. Ultimately though, the marketplace will decide which one will be the go to Uranium ETF. The one displaying the highest daily volume will be king.
About the fund:
Uranium is seen as the clean resource alternative for electric generation. One pound of uranium can generate as much energy as 20,000 pounds of coal, and leaves behind a fraction of the carbon footprint. Almost all the uranium mined today is used to produce electricity, and that provides about 16% of the world’s electricity. Since the bull market for uranium in 2006-2007, many new nuclear plant development projects have been initiated around the world. However, uranium supply is forecasted to be in deficit for every year from 2010 onward. RBC Capital Markets estimates that the price of uranium will peak at $80/lb within three years.
“The Uranium ETF, like the successful Lithium ETF launched last quarter, provides access to a commodity in the renewable energy space,” says Bruno del Ama, CEO of Global X Funds. “These resources are key for the future of clean technology.”
The Global X Uranium ETF tracks the Solactive Global Uranium Index, which is designed to track the performance of the largest and most liquid listed companies globally in the uranium mining industry. As of November 1, 2010 the three largest components were Cameco, Paladin Energy and Uranium One.
Fund Holdings: http://www.globalxfunds.com/Fact_Sheet/Fund123.pdf
Not available as of yet, but as the fund seeks to replicate the Solactive Global Uranium Index with the following components it will give you a pretty good idea which companies will be a must own:
CCJ / CCO.TO – Cameco Corp 20%
PDN.TO – Paladin Energy Ltd. 12.75%
UUU.TO – Uranium One Inc. 12.25%
USU – Usec Inc. 4.75%
Energy Resources of Aust 4.75%
EXT.TO – Extract Resources Ltd. 4.75%
DNN / DML.TO – Denison Mines Corp. 4.75%
Kalahari Minerals Plc 4.75%
UEC – Uranium Energy Corp. 4.68%
HAT.V – Hathor Exploration Ltd. 3.17%
- Uranium – Sector Overview Chart I.
- Uranium Sector Overview Chart II.
- Uranium Sector Overview Chart III.
- Various Sector Overview Charts
Other commodity ETFs worth monitoring:
- LIT – Lithium ETF
- REMX – Rare Earth ETF
- SIL – Silver Miner ETF
- GDXJ – Gold Junior Miner ETF
- PALL / PPLT Platinum and Palladium ETFs
A man who has committed a mistake and doesn’t correct it is committing another mistake. – Confucius
My public list with all my charts can be viewed here: