The ASX-traded URNM ETF has more than doubled from its April low, outperforming the ASX basket of uranium stocks. The nuclear power theme is another macro backdrop that MM is bullish on as we strive for Net Zero, while at the same time, AI will drive global power usage ever higher.
- The ETF holds 41 positions, with its 5 largest holdings currently being Cameco, NAC Kazatomprom, Sprott Physical Uranium, CGN Mining, and Energy Fuels.
- From a regional perspective, it has 37% exposure to Canada, 15% Australia, 14% Kazakhstan, 14% to the US, and 6% China.
- It has a relatively small $232mn market cap, backed up by $US1.8bn in its US parent, while its fees are a reasonable 0.69%.
We know uranium and the nuclear story are a volatile space, but this ETF at least irons out some of the noise, often painful, on the stock level.
- We are bullish on the uranium URNM ETF, but it’s a volatile beast that could see fresh 8-week lows today after last night’s weakness on Wall Street.
MM is bullish on the URNM ETF medium term
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