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Uranium ETF (URA) Hits New 52-Week High
For investors seeking momentum, Global X Uranium ETF (URA - Free Report) is probably on radar. The fund just hit a 52-week high and is up 101.54% from its 52-week low price of $19.50/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
URA in Focus
The underlying Solactive Global Uranium & Nuclear Components Total Return Index seeks to track the price movements in shares of companies that are active in the uranium industry. The fund has major allocations to Canada (38.2%) and the United States (20.8%). The product charges 69 bps in annual fees (See: all Energy ETFs here).
Why the Move?
As the demand for AI soars and clean energy needs grow, tech giants are turning to nuclear power to meet their energy demands. The growing interest in nuclear energy and increasing AI-driven data centers are expected to boost the demand for uranium. Trump’s executive orders and energy deals are also in favor of uranium.
More Gains Ahead?
URA might continue its strong performance in the near term, with a positive weighted alpha of 47.25 (as of Barchart.com), which gives cues of a further rally.