3 uranium ETFs to watch as demand for clean energy rises

How uranium can power the world

To better understand how uranium can be used as a source of sustainable energy, we need a rudimentary understanding of what it is and how it works. An element in the periodic table, uranium is a heavy metal with a distinctive silvery-white color and serves as the main source of energy in nuclear reactors. There is a growing consensus among policy experts that to reach a net-zero energy-balanced future, nuclear energy will need to play a central role. The Executive Secretary for the United Nations Economic Commission for Europe stated: “Nuclear power is an important source of low-carbon electricity and heat that can contribute to attaining carbon neutrality and hence help to mitigate climate change.” And considering that nuclear power plants do not emit carbon dioxide while operating, unlike fossil fuels, they are increasingly becoming an attractive source of energy for supply and scalability. 

Geopolitical tensions and opportunities

Russia’s invasion of Ukraine has catalyzed major repercussions in energy security. The EU (European Union) relied extensively on Russia for energy supply. This policy has all but backfired, and EU lawmakers are already on course to increase their renewable energy capacity. The World Economic Forum reported: “The EU plans to increase its renewable energy targets, aiming for renewables to make up 45% of its overall energy mix by 2030, up from 40% under previous plans.” This comes at the same time the EU voted to classify nuclear energy to be labelled as a green investment. In light of these developments, uranium ETFs could potentially benefit from current geopolitical dynamics and investments. Additionally, investing in ETFs has many potential benefits, including reducing risk through diversification which is key to preserving your hard-earned capital and overall portfolio performance.

3 uranium ETFs to keep an eye on

URNM – (Sprott Uranium Miners ETF)

• AUM: $905.59 M 
• Expense Ratio: 0.85%
• YTD performance: -5.90%

URA – (Global X Uranium ETF) 

• AUM: $1,517.88 M 
• Expense Ratio: 0.69%
• YTD performance: -7.65%

NLR – (VanEck ETF Trust – Vaneck Uranium + Nuclear Energy ETF)  

• AUM: $50.45 M 
• Expense Ratio: 0.89%
• YTD performance: +0.25%
  

References:

https://news.un.org/en/story/2021/08/1097572

https://www.weforum.org/agenda/2022/05/russia-energy-eu-oil-green-fossil-fuel/

https://www.bloomberg.com/news/articles/2022-07-06/eu-lawmakers-remove-last-hurdle-for-gas-nuclear-as-green

https://finance.yahoo.com/quote/URNM/performance/ (YTD return for URNM -- https://www.trackinsight.com/en/fund/XNYS:URNM only shows 1 month, 3 months and max returns, not YTD)