Latest news with #NUKZ
Yahoo
7 days ago
- Business
- Yahoo
Uranium ETFs Surge on New Meta, Constellation AI Deal
Uranium and nuclear ETFs jumped after Meta Platforms Inc. (META) agreed to buy nuclear power for 20 years from a Constellation Energy Corp. (CEG) reactor in Illinois that had been slated to close, as soaring artificial intelligence use forces companies to find fresh electricity supply. The biggest U.S. uranium exchange-traded fund, the $3.2 billion Global X Uranium ETF (URA), added 3% in early afternoon trading. The $255.2 million Range Nuclear Renaissance Index ETF (NUKZ), with its top holding being a 9.3% allocation to Constellation, added 0.9%. Today's gains add to this year's surge in uranium and nuclear exchange-traded funds, which have been jumping on AI-stoked energy demand and as President Donald Trump takes steps to dismantle nuclear power industry regulations. URA's 19% gain this year beats the 1.4% increase in the Vanguard S&P 500 ETF (VOO). URA had jumped 12% on May 23 after Trump signed an executive order making approvals for new reactors easier as well as opening federal lands to nuclear power plant construction and providing for more robust uranium supply lines. Trump, in his first day in office, declared an energy emergency. The Meta pact follows a similar agreement Microsoft Corp. (MSFT) signed with Constellation this past autumn that would restart the Three Mile Island reactor, as Microsoft's artificial intelligence ambitions consume massive amounts of electricity. 'Securing clean, reliable energy is necessary to continue advancing our AI ambitions,' Meta's head of global energy Urvi Parekh said in a statement regarding the pact to buy energy from the Clinton Clean Energy Center. Uranium & Nuclear ETF Gains—Source: Factset AI inquiries on tools like ChatGPT use more energy than traditional search, forcing companies to scour the globe for new energy sources. The International Energy Agency last year said that by 2026, the AI industry will be using 10 times the amount of energy it used in 2023. Other uranium ETFs jumping today include a 5.3% gain in the second-largest uranium ETF, the $1.5 billion Sprott Uranium Miners ETF (URNM), a 7.4% jump in the Sprott Junior Uranium Miners ETF (URNJ) and 2.3% rise in the VanEck Uranium+Nuclear Energy ETF (NLR). Permalink | © Copyright 2025 All rights reserved
Yahoo
23-05-2025
- Business
- Yahoo
URA, Uranium ETFs Surge as Trump Orders Nuclear Reforms
Nuclear energy and uranium ETFs leaped Friday, charged by expectations that President Donald Trump is poised to remove barriers to the industry's expansion. The biggest U.S. uranium exchange-traded fund, the $2.9 billion Global X Uranium ETF (URA) soared more than 12% Friday afternoon, adding to the past month's 26% gain. The No. 2 fund, the $1.4 billion Sprott Uranium Miners ETF (URNM) also gained more than 12%. The top holding in both funds is Canadian miner Cameco Corp. (CCJ), which rose 14%. Trump signed an executive order today making approvals for new reactors easier, opening federal lands to nuclear power plant construction and providing for more robust uranium supply lines. Artificial intelligence computing has created massive new demands for electricity, and Trump in his first day in office declared an energy emergency. 'Trump's embrace of nuclear energy is a tide that lifts the entire nuclear industry, adding a premium to nuclear stocks and increasing demand for uranium,' said Research Lead Kent Thune, CFP. The performance of Uranium and nuclear ETFs has been mixed over the past year, with uranium miners hit particularly hard. URNM has dropped 35%, while the $229.4 million Sprott Junior Uranium Miners ETF (URNJ) has lost 45%. That's, in part, due to a 49% drop in uranium prices since January 2024, according to data on Cameco's website. The world's top producer is Kazakhstan, a close ally of Russia, which has been hit by global sanctions over the war with Ukraine. Canada is the world's No. 2 supplier and has been threatened with sanctions by the Trump administration. Other nuclear and uranium ETFs jumping today include the VanEck Uranium+Nuclear Energy ETF (NLR), which moved 11% higher, and the Range Nuclear Renaissance Index ETF (NUKZ), which added 7%. NUKZ is the outlier with its 39% gain over the past & Uranium ETF Flows—Source: Only eight ETFs are listed on as nuclear/uranium-focused | © Copyright 2025 All rights reserved
Yahoo
25-02-2025
- Business
- Yahoo
Roundhill's Uranium ETF Targets Nuclear Energy's Explosive Growth
Roundhill Investments is jumping on the nuclear energy bandwagon with the Roundhill Uranium ETF (UX), representing the first U.S.-listed ETF providing exposure to the spot price of uranium. While a handful of ETFs offer exposure to the growing nuclear power theme, UX is being promoted as a pure play on nuclear and the uranium mining value chain. According to data, the biggest fund in the general category is the $3.3 billion Global X Uranium ETF (URA), which tracks a market-cap-weighted index of companies involved in uranium mining and the production of nuclear components. URA had a solid 46.3% gain in 2023 but was flat last year and is down 2.7% so far in 2025. The best performer among the tight group of uranium-adjacent funds is the Range Nuclear Renaissance Index ETF (NUKZ), which was launched in January 2024 and is up nearly 68% over the past 12 months. NUKZ is also nominated for ETF of the Year. Rounding out the list is the $1.4 billion Sprott Uranium Miners ETF (URNM), which lost 14% last year and is down 9.9% this year; the $1.1 billion VanEck Uranium and Nuclear ETF (NLR), which gained 14.3% last year and is up 2.9% this year; and the $234 million Sprott Junior Uranium Miners ETF (URNJ), which lost 18.2% last year and is down 8.6% this year. According to Roundhill, the uranium market is poised for growth, but a recent pullback suggests this is also a potentially volatile asset. While the price of uranium peaked in January 2024, the price has dropped by more than 26% over the past 12 months, including a volatile 5.3% decline from the start of 2025. Roundhill's case for UX is pegged to expectations of global uranium demand nearly doubling by 2040 to 'nearly 130,000 tons as more nuclear reactors are built to meet the world's increasing electricity needs.' In an email exchange with a Roundhill Chief Executive Officer Dave Mazza, UX was described as the only alternative for uranium investing beyond funds investing in publicly traded uranium miners. 'UX offers access to investors to directly express an investment view on uranium as a commodity via the fund,' Mazza said. 'Investors also have the ability to utilize options on UX, which we see as an important tool for enhancing investment access to the uranium market.' In terms of UX success, Mazza said, 'The growth of global nuclear power capacity will be important.' 'AI power demand could have an influence on the uranium market as well,' Mazza added, citing International Energy Agency data showing ChatGPT inquiries consume large amounts of energy. 'Consequently, further AI adoption will lead to an increase in data center power demand. Goldman Sachs Research forecasts a 160% increase by 2030,' Mazza said. In terms of potential risks, he said, 'The theme could take time to develop." 'Looking at nuclear production, existing nuclear power plants are already operating near capacity year-round,' Mazza added. 'In order to increase production, substantial amounts of capex and time are involved.' New York-based Roundhill has 13 ETFs that combine for $1.6 | © Copyright 2025 All rights reserved Sign in to access your portfolio
