by Ian Cooper
Uranium stocks could benefit from two key catalysts.
One, the Trump Administration just expanded its critical minerals list to include uranium in an effort to strengthen domestic supply and reduce reliance on foreign sources.
As noted by Investing News, “The designation of uranium recognizes its strategic importance in powering commercial nuclear reactors, fueling US Navy submarines and supporting defense applications. Currently, the United States imports over 95 percent of its uranium, a dependence that policymakers view as a critical national security concern.”
Two, as the demand for artificial intelligence grows, tech giants are turning to nuclear power to fuel their energy-intensive data centers. Microsoft, for example, recently signed a power purchase agreement with Constellation Energy. That’s because Microsoft needs extra power to run the servers at its Azure business unit, and thinks nuclear might be the best way to produce that power. Alphabet and Amazon are looking to nuclear power for their data centers. Even Alphabet partnered with Kairos Power to open small modular nuclear reactors.
We can always jump into uranium stocks like Uranium Energy Corp. (SYM: UEC), Denison Mines (SYM: DNN), Cameco Corp. (SYM: CCJ) and NexGen Energy (SYM: NXE).
However, if you want the greatest exposure to uranium stocks at a lower cost, you may want to consider exchange traded funds (ETFs), such as:
Global X Uranium ETF (URA)
With an expense ratio of 0.69%, the oversold Global X Uranium ETF (URA) 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, holds about 50 related uranium stocks.
That includes Cameco, NexGen Energy, Uranium Energy, Paladin Energy, Denison Mines, and NuScale Power to name a few. The ETF last traded at $44.75 a share.
Sprott Uranium Miners ETF (URNM)
With an expense ratio of 0.75%, the Sprott Uranium Miners ETF is a pure-play uranium fund that focuses on uranium miners and physical uranium. Some of its top holdings include Cameco, Energy Fuels, NexGen Energy, Denison Mines, Deep Yellow Ltd., Boss Energy, Ur-Energy Inc., and Yellow Cake PLC to name just a few.
The ETF last traded at $54.04 a share.
Sprott Junior Uranium Miners ETF (URNJ)
With an expense ratio of 0.8%, the Sprott Junior Uranium Miners ETF is also a pure-play ETF focused on small uranium miners. Some of its top holdings include Uranium Energy Inc., Denison Mines, NexGen Energy, Energy Fuels, Paladin Energy, Ur-Energy Inc., and Uranium Royalty Corp. to name just a few.
The ETF last traded at $25.19 a share.
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