Uranium Stocks Surge as Nuclear Power Gains Momentum: Which ETFs Lead the Charge?
Table of Contents
As favorable regulations encourage a boom in domestic nuclear power, several prominent uranium miners have experienced skyrocketing shares in the last year. Investors are taking notice, and exchange-traded funds (ETFs) focused on the sector are emerging as potential powerhouses.
The uranium market is poised for a significant shift. While uranium production in the United States currently exceeds consumption, analysts predict a considerable demand increase beginning in 2026 that will likely outpace production levels. This anticipated supply squeeze is expected to drive up uranium prices, creating a dual prospect for investors – benefiting from both company gains and the overall price thankfulness of the commodity.
Here’s a look at three ETFs capitalizing on this trend, each with a unique approach to uranium investment:
Unique Focus on Smaller Uranium Companies: The URNJ ETF
The URNJ ETF has demonstrated extraordinary growth,rising 89% over the past year. it offers investors targeted exposure to smaller uranium miners – companies with mid-cap or lower market capitalizations. These smaller producers may be particularly well-positioned to benefit from regulatory changes that facilitate expansion.
URNJ provides access to lesser-known firms like a $6-billion U.S. uranium producer operating in Wyoming and Texas. However, the fund’s relatively small universe of smaller uranium firms results in less diversification compared to other options.Its 35 holdings are generally evenly weighted, with a notable allocation of over 14% to one particular stock.
Despite a higher expense ratio of 0.80%, URNJ’s focus on high-growth potential and a current dividend yield of 2.25% make it an attractive option for bullish investors.
Combining Miners and Physical Uranium: The URNM ETF
the URNM ETF, often considered a counterpart to URNJ, boasts five times the managed assets and double the trading volume. Its portfolio is more concentrated, with 27 holdings and significant investments in Cameco (approximately 20% of assets) and another major player (14%).
The overlap between URNJ and URNM may prompt investors to choose between the two.A key differentiator for URNM is its allocation to physical uranium – a direct investment in the commodity itself, representing 11.6% of the portfolio. This appeals to investors seeking close alignment with uranium prices.
URNM has slightly outperformed URNJ over the last year, increasing by over 93%, while maintaining a slightly lower fee of 0.75%. Its dividend yield is currently 1.69%.
Strong Portfolio, Performance, and Fees: The URA ETF
the URA ETF stands out as the largest and most established uranium ETF, with the highest managed assets and trading volume. It has also delivered strong performance, rising 110% in the last year and offering the highest dividend yield among the three, at 3.65%.
URA’s diversified portfolio of 49 holdings spans various market caps and developed markets. notably, it includes companies not traditionally associated with nuclear energy, such as those involved in manufacturing nuclear components. While Cameco represents almost a quarter of its portfolio, URA provides broad exposure to the uranium industry.
With a lower expense ratio of 0.69%, a history of strong performance, and comprehensive diversification, URA presents a compelling value proposition for investors seeking a single uranium investment.
As the demand for uranium continues to rise, these ETFs offer a diversified and potentially lucrative pathway for investors looking to capitalize on the resurgence of nuclear power.
