The ASX-traded URNM ETF has more than doubled from its April low, outperforming the ASX basket of uranium stocks as it aims to track the North Shore Uranium Mining Index. 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. This ETF holds a broad-based 41 stocks from Cameco, to NAC Kazatomprom, to Sprott Physical Uranium as it tracks a global basket of companies in the mining, exploration, development and production of uranium for a reasonable 0.69% pa. Local names Paladin, NexGen and Deep Yellow make up ~13% of the ETF, less than heavyweight Cameco (CCJ US), which dominates the ETF with a current 15.1% weighting.
- We are bullish on the uranium URNM ETF, but it’s a volatile beast; we like the risk/reward around $10.50.
MM is bullish on the URNM ETF medium term
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