Uranium ETF & other ASX stocks
The Uranium ETF URNM has corrected over the last 1month, what is your view looking forward regarding this ETF and other ASX uranium stocks.
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Answer
Hi David,
To enable us to look at the uranium sector over the longer term we’ve used the Global X Uranium ETF (NYSE: URA) which was trading during the Fukushima nuclear disaster, as opposed to the ASX-traded BetaShares Global Uranium ETF (ASX: URNM) which only commenced trading in mid-2022.
In our opinion the two key points are as follows:
- MM is very bullish towards uranium and nuclear power over the coming years as the world scrambles to meet the energy demands of AI and the evolution towards clean energy. Global nuclear capacity is expected to rise by at least one-third by 2035 with more than 40 countries now pursuing new nuclear projects, and SMRs (small modular reactors) are becoming a major growth theme. Supply is set to become a major issue in the coming years.
- However, uranium stocks are historically volatile with the URNM ETF having already corrected 52% and 29% in the last 3-years – the sector lends itself to active positioning.
We saw Paladin (ASX: PDN) which MM holds in our Active Growth Portfolio plunge ~12% on Thursday after reporting negative net cashflow in the nine-months ended March 31st. However, the stock is still up +16% in 2026, slightly underperforming NexGen (ASX: NXG) +20%, which we own in our Emerging Companies Portfolio.
- We believe uranium stocks and ETFs are a buy into current weakness, but history tells us they are very volatile.
