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Global X Uranium ETF: Nuclear Energy Craze Benefactor

Global X Uranium ETF (URA) is an exchange traded fund managed by Global X Management Company. The fund seeks to invest in public companies with the goal of matching the price &...
Global X Uranium ETF: Nuclear Energy Craze Benefactor © Reuters. Global X Uranium ETF: Nuclear Energy Craze Benefactor

Global X Uranium ETF (URA) is an exchange traded fund managed by Global X Management Company.

The fund seeks to invest in public companies with the goal of matching the price & yield performance of the Solactive Global Uranium & Nuclear Components Total Return Index. I am bullish on the ETF.

Uranium and Nuclear Energy

Uranium's use in nuclear energy is what's spurring on the current price movement. Global X's Uranium ETF has gained over 120% during the past year, as a push towards decarbonization has accelerated immensely.

Although many western nations disregard nuclear energy, China isn't doubting its application at all, and has 49 operational nuclear power facilities, and 17 under construction. A further 100 are anticipated to be constructed before 2035.

The preconception about nuclear power is that it's dangerous and expensive.

Barclays (LON:BARC) (BCS) addressed these perceived safety concerns stating that, "Advanced nuclear reactors and proposed small modular reactors do not rely on power to drive safety systems. Instead, they depend on the laws of physics (gravity, convection, heat transfer) to protect the core in the event of an accident. These designs should provide even better safety statistics than the historical comparables."

Nuclear power even provides more efficient waste management solutions to other renewable sources. It also doesn't rely on seasonality, nor does it need any storage units, making for a more effective model overall.

In terms of cost outlay, one needs to emphasize the horizon. Nuclear energy plants are costly to construct, but their operating costs are cheap, and they challenge fossil fuel sources.

The OECD Nuclear Energy Agency did a study and concluded that nuclear energy running costs are elastic with discount rates (costs of capital determined by a project's lifecycle).

The study found that at a discount rate of 3%, nuclear energy is the lowest cost of energy; at 7%, its median cost is close to the median cost of coal energy; and at 10%, it becomes a significantly more expensive source of energy relative to non-renewables.

The ETF's Idiosyncrasies

Uranium stocks are still risky bets, and this ETF is none less so, with a standard deviation that's 129.3% higher than an average ETF, and volatility of 123.6% more than an average ETF.

Its recent popularity is however undoubted. In the last six months, it has received 714.4% more inflow than the average ETF, while trading at a 200 day moving average of 18.97, a near 42% rise.

Finally, this ETF presents investors with de-risked exposure to Cameco Corp (NYSE:CCJ), the world's largest uranium producer. Cameco makes up for 22.49% of the ETF, and trades at an expected three-to-five year EPS CAGR of 65%.

If Cameco ends up producing such returns, its stock price would skyrocket, and Global X Uranium would benefit as a consequence. Growth investors are aware of Cameco's prospects, but gaining exposure to the stock via a diversified ETF provides superior risk-return utility.

Final Word

Uranium is a hot topic of conversation due to nuclear energy prospects. Barclays removes the thought that nuclear energy is dangerous, and an OECD study suggests that its running costs are less expensive than current energy options, if the discount rates are low enough.

Global X Uranium ETF provides substantial exposure to uranium companies, with 65% of the funds invested in uranium-related stocks, including industry leader Cameco Corp.

It's a risky asset to buy, with the potential of a high payoff.

Disclosure: At the time of publication, Steve Gray Booyens had a long position in Global X Uranium ETF.

Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices or performance.

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28-09-2021 02:47:54 (UTC+7)

EUR/USD

1.1698

-0.0015 (-0.13%)

Summary

Neutral

Moving Avg:

Buy (5)

Sell (7)

Indicators:

Buy (6)

Sell (2)

EUR/USD

1.1698

-0.0015 (-0.13%)

Summary

Neutral

Moving Avg:

Buy (5)

Sell (7)

Indicators:

Buy (6)

Sell (2)

GBP/USD

1.3705

+0.0022 (+0.16%)

Summary

↑ Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (8)

Sell (1)

USD/JPY

111.00

+0.28 (+0.26%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (1)

Sell (5)

AUD/USD

0.7292

+0.0034 (+0.46%)

Summary

Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (4)

Sell (2)

USD/CAD

1.2627

-0.0025 (-0.20%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (6)

Sell (0)

EUR/JPY

129.85

+0.15 (+0.12%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (8)

EUR/CHF

1.0831

+0.0008 (+0.07%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (2)

Sell (5)

Gold Futures

1,750.95

-0.75 (-0.04%)

Summary

Neutral

Moving Avg:

Buy (5)

Sell (7)

Indicators:

Buy (8)

Sell (1)

Silver Futures

22.663

+0.238 (+1.06%)

Summary

Sell

Moving Avg:

Buy (5)

Sell (7)

Indicators:

Buy (1)

Sell (5)

Copper Futures

4.2838

-0.0017 (-0.04%)

Summary

Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (4)

Sell (4)

Crude Oil WTI Futures

75.42

+1.44 (+1.95%)

Summary

↑ Buy

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (8)

Sell (1)

Brent Oil Futures

78.61

+1.38 (+1.79%)

Summary

↑ Buy

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (7)

Sell (1)

Natural Gas Futures

5.883

+0.683 (+13.13%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (7)

Sell (0)

US Coffee C Futures

194.98

+0.63 (+0.32%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (5)

Sell (0)

Euro Stoxx 50

4,165.48

+6.97 (+0.17%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (9)

S&P 500

4,447.20

-8.28 (-0.19%)

Summary

↑ Buy

Moving Avg:

Buy (9)

Sell (3)

Indicators:

Buy (6)

Sell (1)

DAX

15,573.88

+42.13 (+0.27%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (8)

FTSE 100

7,063.40

+11.92 (+0.17%)

Summary

↑ Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (1)

Sell (7)

Hang Seng

24,208.78

+16.62 (+0.07%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (8)

Sell (0)

US Small Cap 2000

2,288.55

+34.67 (+1.54%)

Summary

Sell

Moving Avg:

Buy (4)

Sell (8)

Indicators:

Buy (3)

Sell (5)

IBEX 35

9,002.90

+129.80 (+1.46%)

Summary

Buy

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (4)

Sell (2)

BASF SE NA O.N.

64.740

+1.040 (+1.63%)

Summary

↑ Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (1)

Sell (5)

Bayer AG NA

47.47

+0.99 (+2.13%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (0)

Allianz SE VNA O.N.

196.19

+3.85 (+2.00%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (6)

Sell (2)

Adidas AG

278.80

-2.77 (-0.98%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (10)

Deutsche Lufthansa AG

6.561

+0.328 (+5.26%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (7)

Sell (2)

Siemens AG Class N

147.27

-0.84 (-0.57%)

Summary

↑ Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (0)

Sell (10)

Deutsche Bank AG

11.120

+0.285 (+2.63%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (5)

Sell (3)

 EUR/USD1.1698Neutral
 GBP/USD1.3705↑ Sell
 USD/JPY111.00Neutral
 AUD/USD0.7292Buy
 USD/CAD1.2627↑ Buy
 EUR/JPY129.85↑ Sell
 EUR/CHF1.0831↑ Sell
 Gold1,750.95Neutral
 Silver22.663Sell
 Copper4.2838Sell
 Crude Oil WTI75.42↑ Buy
 Brent Oil78.61↑ Buy
 Natural Gas5.883↑ Buy
 US Coffee C194.98↑ Buy
 Euro Stoxx 504,165.48↑ Sell
 S&P 5004,447.20↑ Buy
 DAX15,573.88↑ Sell
 FTSE 1007,063.40↑ Sell
 Hang Seng24,208.78↑ Buy
 Small Cap 20002,288.55Sell
 IBEX 359,002.90Buy
 BASF64.740↑ Sell
 Bayer47.47↑ Buy
 Allianz196.19↑ Buy
 Adidas278.80↑ Sell
 Lufthansa6.561↑ Buy
 Siemens AG147.27↑ Sell
 Deutsche Bank AG11.120↑ Buy
Mua/Bán 1 chỉ SJC
# So hôm qua # Chênh TG
SJC Eximbank5,665/ 5,715
(0/ 0) # 900
SJC HCM5,635/ 5,700
(0/ 0) # 885
SJC Hanoi5,635/ 5,702
(0/ 0) # 887
SJC Danang5,635/ 5,702
(0/ 0) # 887
SJC Nhatrang5,635/ 5,702
(0/ 0) # 887
SJC Cantho5,635/ 5,702
(0/ 0) # 887
Cập nhật 28-09-2021 02:47:57
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ↀ Giá vàng thế giới
$1,750.90+1.40.08%
Live 24 hour Gold Chart
ʘ Giá bán lẻ xăng dầu
Sản phẩmVùng 1Vùng 2
RON 95-IV2204022480
RON 95-II,III2194022370
E5 RON 92-II2071021120
DO 0.05S1658016910
DO 0,001S-V1693017260
Dầu hỏa1564015950
ↂ Giá dầu thô thế giới
WTI$75.42+0.270.36%
Brent$79.40+0.460.58%
$ Tỷ giá Vietcombank
Ngoại tệMua vàoBán ra
USD22.630,0022.860,00
EUR25.993,7727.346,60
GBP30.324,2231.591,18
JPY200,45212,05
KRW16,7520,39
Cập nhật lúc 18:54:42 27/09/2021
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