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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 20:22:23 (UTC+7)

EUR/USD

1.1680

-0.0014 (-0.12%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (9)

EUR/USD

1.1680

-0.0014 (-0.12%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (9)

GBP/USD

1.3558

-0.0137 (-1.00%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (8)

Sell (0)

USD/JPY

111.50

+0.51 (+0.46%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (3)

Sell (7)

AUD/USD

0.7253

-0.0033 (-0.45%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (8)

Sell (0)

USD/CAD

1.2653

+0.0026 (+0.21%)

Summary

↑ Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (0)

Sell (8)

EUR/JPY

130.24

+0.47 (+0.36%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (0)

Sell (8)

EUR/CHF

1.0847

+0.0024 (+0.22%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (6)

Sell (2)

Gold Futures

1,734.80

-17.20 (-0.98%)

Summary

Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (4)

Sell (4)

Silver Futures

22.383

-0.311 (-1.37%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (6)

Sell (3)

Copper Futures

4.2693

-0.0202 (-0.47%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (6)

Sell (1)

Crude Oil WTI Futures

76.27

+0.82 (+1.09%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (8)

Sell (0)

Brent Oil Futures

79.42

+0.70 (+0.89%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (8)

Sell (0)

Natural Gas Futures

5.952

+0.221 (+3.86%)

Summary

Buy

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (8)

Sell (1)

US Coffee C Futures

194.93

+1.28 (+0.66%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (0)

Euro Stoxx 50

4,105.70

-59.78 (-1.44%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (6)

Sell (0)

S&P 500

4,443.11

-12.37 (-0.28%)

Summary

↑ Sell

Moving Avg:

Buy (3)

Sell (9)

Indicators:

Buy (0)

Sell (9)

DAX

15,405.65

-168.23 (-1.08%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (6)

Sell (0)

FTSE 100

7,069.87

+6.47 (+0.09%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (8)

Sell (0)

Hang Seng

24,500.39

+291.61 (+1.20%)

Summary

↑ Buy

Moving Avg:

Buy (9)

Sell (3)

Indicators:

Buy (7)

Sell (1)

US Small Cap 2000

2,281.79

+33.71 (+1.50%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (7)

IBEX 35

8,904.50

-98.40 (-1.09%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (8)

Sell (0)

BASF SE NA O.N.

65.220

+0.480 (+0.74%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (10)

Sell (1)

Bayer AG NA

47.68

+0.21 (+0.44%)

Summary

Neutral

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (3)

Sell (2)

Allianz SE VNA O.N.

195.95

-0.24 (-0.12%)

Summary

↑ Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (2)

Sell (4)

Adidas AG

271.00

-7.80 (-2.80%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (11)

Sell (0)

Deutsche Lufthansa AG

6.505

-0.056 (-0.85%)

Summary

Sell

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (1)

Sell (6)

Siemens AG Class N

144.20

-3.07 (-2.08%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (8)

Deutsche Bank AG

11.156

+0.036 (+0.32%)

Summary

↑ Buy

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (9)

Sell (1)

 EUR/USD1.1680↑ Sell
 GBP/USD1.3558↑ Buy
 USD/JPY111.50↑ Sell
 AUD/USD0.7253↑ Buy
 USD/CAD1.2653↑ Sell
 EUR/JPY130.24↑ Sell
 EUR/CHF1.0847↑ Buy
 Gold1,734.80Buy
 Silver22.383↑ Buy
 Copper4.2693↑ Buy
 Crude Oil WTI76.27↑ Buy
 Brent Oil79.42↑ Buy
 Natural Gas5.952Buy
 US Coffee C194.93↑ Buy
 Euro Stoxx 504,105.70↑ Buy
 S&P 5004,443.11↑ Sell
 DAX15,405.65↑ Buy
 FTSE 1007,069.87↑ Buy
 Hang Seng24,500.39↑ Buy
 Small Cap 20002,281.79↑ Sell
 IBEX 358,904.50↑ Buy
 BASF65.220↑ Buy
 Bayer47.68Neutral
 Allianz195.95↑ Sell
 Adidas271.00↑ Buy
 Lufthansa6.505Sell
 Siemens AG144.20↑ Sell
 Deutsche Bank AG11.156↑ Buy
Mua/Bán 1 chỉ SJC
# So hôm qua # Chênh TG
SJC Eximbank5,655/ 5,705
(-10/ -10) # 932
SJC HCM5,645/ 5,710
(10/ 10) # 935
SJC Hanoi5,645/ 5,712
(10/ 10) # 937
SJC Danang5,645/ 5,712
(10/ 10) # 937
SJC Nhatrang5,645/ 5,712
(10/ 10) # 937
SJC Cantho5,645/ 5,712
(10/ 10) # 937
Cập nhật 28-09-2021 20:22:25
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ↀ Giá vàng thế giới
$1,734.92-16.25-0.93%
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$76.04-0.79-1.05%
Brent$79.32-0.72-0.92%
$ Tỷ giá Vietcombank
Ngoại tệMua vàoBán ra
USD22.640,0022.870,00
EUR25.936,3927.286,23
GBP30.388,5931.658,23
JPY200,05211,63
KRW16,6620,29
Cập nhật lúc 18:55:03 28/09/2021
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