Uranium Funds Surf Price Surge in Renewed Bets on Nuclear Power
Uranium funds have soared from their summer lows as a global energy crunch revives interest in nuclear power.
The $1.8 billion Global X Uranium ETF (ticker URA) has rallied about 30% and the $1 billion Sprott Uranium Miners ETF (ticker URNM) is up nearly 43% from their July 6 lows. Meanwhile, the Sprott Physical Uranium Trust, which holds about $3 billion worth of the radioactive material, has jumped about 30% since its July 13 bottom.
While fund inflows aren’t nearly as hefty as they were during previous booms for nuclear fuel investment products, strategists remain positive on the fundamental case for the radioactive material and blame the broader stock market slump for the low activity.
After draining cash for three months, URA has pulled in about $70 million in net flows in August and is set to outpace that amount this month. It’s a pickup, but nowhere close to the $425 million the fund pulled in during March, or the over $860 million it attracted throughout 2021. Last month, investors pulled $4 million from URNM, compared to $13 million inflows in July.