The Global X Uranium ETF (URA) provides investors with exposure to companies involved in uranium mining and the production of nuclear components.
Global X Uranium ETF, Price & Chart
The ETF aims to provide investment results that generally correspond to the price and yield performance of the Solactive Global Uranium & Nuclear Components Total Return Index. The index includes companies engaged in uranium extraction, refining, exploration, or those that hold physical uranium.
As nuclear energy plays a key role in the transition to low-carbon energy solutions, uranium and related industries have gained significant attention. The URA ETF provides an opportunity for investors to capitalise on the growing sector. As of January 10, 2025, the ETF's net assets are $3.33 billion. The fund currently holds 51 stocks and was created in 2010.
Global X Uranium ETF Performance
The URA ETF has had an up-and-down last few years, with some pushes to new highs resulting in sharp pullbacks. It has been volatile, but this reflects the cyclical nature of the uranium market. However, recent interest in nuclear energy as a cleaner alternative has supported a positive outlook from investors and analysts. The ETF has delivered the following returns:
| Year | Performance |
|---|---|
| 2025 (YTD) | +1.46% |
| 2024 | -0.53% |
| 2023 | +46.34% |
| 2022 | -11.31% |
| 2021 | +57.72% |
URA ETF Holdings (as of January 10, 2025)
| Company | Net Assets (%) |
|---|---|
| Cameco Corp | 24.47% |
| Sprott Physical Uranium | 8.72% |
| NexGen Energy | 6.81% |
| Uranium Energy | 5.73% |
| NAC Kazatog-Regs | 4.94% |
| Oklo | 3.56% |
| Denison Mines | 3.51% |
| Paladin Energy | 3.51% |
| NuScale Power | 3.19% |
| Yellow Cake | 2.63% |
Uranium Forecast
Bull Argument: There are various reasons to believe uranium stocks will rise. For example, the World Nuclear Association says that uranium demand is forecast to grow by 28 percent between 2023 and 2030. Meanwhile, an article from Mining.com reveals that Jacob White, the Sprott Physical Uranium Trust ETF product manager, told them that while he is, of course, bullish on the sector, the growing sensitivity to geopolitical factors will mean the “uranium price will continue to behave in this staircase-like pattern over the intermediate term with short-term bouts of volatility.”
Finally, Ben Finegold of Ocean Wall told Investing News that they “remain really excited about uranium…over the next several years.” He added that the uranium narrative is “very, very unique,” and he forecasts the term price will end 2025 in the US$95 to US$100 per pound range.
Bear Argument: On the other hand, there should always be some caution or awareness of the inherent risks associated with the uranium market, including regulatory hurdles, geopolitical tensions, and the high cost of nuclear energy projects. Additionally, some bearish investors may note that competition from renewable energy sources like wind and solar could limit the growth potential for nuclear energy.
Our View: Despite the risks, the Global X Uranium ETF and the sector offer a potentially unique investment opportunity for those believing in the future of the nuclear energy sector. Of course, the ETF's focus on uranium and related industries positions it well to benefit from the growing emphasis on clean energy. However, potential investors should also be aware of the sector's volatility.
Who Should Buy the Global X Uranium ETF?
While there is growing interest in uranium and nuclear power, investing in the sector may not be for everyone. As a result, the ETF will appeal to specific types of investors:
- Growth-oriented investors: Those seeking exposure to a potentially high-growth sector with significant potential upside.
- Risk-tolerant investors: Given the volatility of the uranium market, the ETF is more suitable for investors comfortable with higher risk.
- Thematic investors: Those interested in investing in clean energy and the transition to a low-carbon economy may find this ETF particularly appealing.
Long-term investors: The potential for long-term growth in the nuclear energy sector makes this ETF a strong candidate for those with a long-term investment perspective. Other ETFs in the sector include the VanEck Uranium Nuclear Energy (NLR).
