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Uranium ETF (URA) Hits New 52-Week High

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For investors seeking momentum, Global X Uranium ETF (URA - Free Report) is probably on the radar. The fund just hit a 52-week high and has moved up 215.7% from its 52-week low price of $19.50 per share.

But are there more gains in store for this ETF? Let us 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 and the United States. The product charges 69 bps in annual fees (See: all Energy ETFs here).

Why the Move?

As 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.

The world’s largest physical uranium fund also boosted purchases of the nuclear fuel. The Sprott Physical Uranium Trust purchased 500,000 pounds of uranium this week, with the Toronto-listed fund issuing 9.6 million of its shares to raise $214 million, lifting its cash pile to $323 million, as quoted on Financial Review.

More Gains Ahead?

URA may continue its strong performance in the near term, with a positive weighted alpha of 135.84 (as of Barchart.com), which gives cues of a further rally.


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