Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
I was looking at the chart of one of the Uranium ETFs this week (pity I couldn't attach it). For the past 12 months there have been heavy trading volumes, both buy and sell. In fact, they almost cancel each other out. Obviously, traders (and bots) take advantage of the volatility in the sector, but are their volumes enough to actually keep a lid on the share prices?
Hi David,
In theory the answer is yes but in reality, the ETFs are more of a derivative of the underlying stock prices, for example the commonly referenced URNM ETF which is traded on the ASX is made up of 42 stocks, with the 5 largest holdings being Cameco Corp, NAC Kazatomprom, Sprott Physical Uranium, Energy Fuels Canada and Uranium Energy Corp, a very diverse group of companies.
Traders who are looking for shorts are generally very stock specific with Boss Energy (BOE) and Paladin (PDN) the two most shorted stocks on the ASX at present with their operational issues driving these positions as much as their exposure to uranium which itself is mildly higher in 2025, while the URNM ETF has almost doubled from its April low.
Hence our answer is no, the volumes are high because the ETF/sector has been volatile through 2024/5.
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