Investors may want to pay close attention to uranium opportunities.
All after Japan signaled a return to nuclear power to stabilize energy supply.
According to Reuters, “Japan will restart more idled nuclear plants and look at developing next-generation reactors, Prime Minister Fumio Kishida said on Wednesday, setting the stage for a major policy shift on nuclear energy a decade after the Fukushima disaster.”
Helping, Canaccord Genuity analysts say that Japan’s move toward nuclear power will be great for the wider industry.
“This represents a major policy shift amid soaring energy costs, a global fuel shortage, and extreme weather,” noted Canaccord analysts, as quoted by Proactive Investors. “While still subject to final approvals, this represents a dramatic shift in both government policy and public perception. It is clear to us that many countries are revisiting nuclear power as a response to rising energy prices driven by the Ukraine war and as a tool for decarbonization.”
While investors can always push into surging uranium stocks, like Cameco Corp. (CCJ), Uranium Energy (UEC), and Energy Fuels (UUU), ETFs offer greater diversification at less cost. Here are three trade ideas to keep an eye on.
Global X Uranium ETF (URA)
With an expense ratio of 0.69%, the URA ETF provides investors access to a broad range of companies involved in uranium mining and the production of nuclear components, including those in extraction, refining, exploration, or manufacturing of equipment for the uranium and nuclear industries. Some of its top holdings include Cameco Corp., NexGen Energy, Paladin Energy, Uranium Energy Corp., and Energy Fuels Inc. to name a few.
Sprott Funds Uranium Mining ETF (URNM)
With an expense ratio of 0.85%, the ETF invests at least 80% of its total assets in securities of the North Shore Global Uranium Mining Index. The Index is designed to track the performance of companies that devote at least 50% of their assets to the uranium mining industry, which may include mining, exploration, development, and production of uranium, or holding physical uranium, owning uranium royalties, or engaging in other, non-mining activities.
VanEck Uranium+Nuclear Energy ETF (NLR)
With an expense ratio of 0.89%, the ETF seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS Global Uranium & Nuclear Energy Index, which is intended to track the overall performance of companies involved in: (i) uranium mining or uranium mining projects.