To The Moon

As global energy shortages worsen and geopolitical tensions persist, nuclear energy is making a powerful comeback. Uranium prices surged to $83 per pound in October, marking a two-month high, reflecting renewed interest in nuclear energy as a solution for the future.

Why Is Nuclear Energy Back in Focus?

Rising energy uncertainty and global carbon reduction goals are prompting governments and companies to reassess nuclear energy's strategic value. Nuclear power can meet increasing electricity demands while reducing reliance on fossil fuels, boosting energy security. Countries like the U.S. are prioritizing nuclear, with the Biden administration supporting the restart of nuclear plants to decrease dependence on natural gas and oil.

Nuclear energy also plays a key role in achieving "net-zero emissions." Unlike solar and wind, nuclear power provides stable, continuous energy, unaffected by weather. This reliability is making nuclear an essential part of global energy transitions.

Global Expansion: Policy Support and Innovation

Many countries are expanding nuclear energy through favorable policies. By 2050, over 20 nations aim to triple nuclear power capacity. Europe leads the trend, with Belgium extending reactor lifespans and Sweden focusing on new projects. China plans to double its nuclear capacity by 2035, accounting for 40% of global growth.

Technological advancements, particularly in small modular reactors (SMRs), are also driving growth. These reactors are more flexible and cost-effective, suitable for areas with variable energy demand. By 2030, multiple SMR projects are expected to be operational, enhancing nuclear energy's scalability.

Long-Term Growth Outlook

According to the International Energy Agency (IEA), nuclear power capacity is expected to grow significantly by 2050. Under the Stated Policies Scenario (STEPS), nuclear capacity will rise from 416 GWe in 2023 to 647 GWe, with the potential to reach 1,017 GWe if net-zero targets are pursued aggressively.

While China will be the main contributor, other nations like the U.S., France, and Japan are also extending reactor lifespans and planning new nuclear plants. As more countries recognize nuclear energy’s role in climate goals, its global share will continue to grow.

How Investors Can Leverage the Opportunity

With uranium prices rising and nuclear energy rebounding, investors are eyeing opportunities. Nuclear energy ETFs offer a diversified, relatively low-risk way to invest in the sector, covering uranium mining companies, nuclear power firms, and related tech suppliers.

Top 3 Nuclear Energy ETFs

Global X Uranium ETF (URA)

• AUM: $3.8 billion

• YTD Return: 20%

• Expense Ratio: 0.69%
  URA invests in uranium mining and nuclear equipment firms, offering diversified exposure to the uranium market. Its top holdings include Sprott Physical Uranium Trust, Cameco, and NexGen Energy.

Sprott Uranium Miners ETF (URNM)

• AUM: $1.8 billion

• YTD Return: 8%

• Expense Ratio: 0.75%
  URNM focuses on uranium production and exploration, particularly small and mid-sized firms. It provides exposure to the early stages of uranium resource development.

Sprott Junior Uranium Miners ETF (URNJ)

• AUM: $330 million

• YTD Return: 10%

• Expense Ratio: 0.80%
  URNJ targets smaller uranium companies, offering higher risk but greater potential rewards. It’s designed for investors seeking exposure to junior uranium miners.

These ETFs provide a straightforward way for investors to participate in the growing nuclear energy sector. As uranium prices continue to rise, nuclear energy offers a compelling investment opportunity for those focused on long-term growth and energy transitions.

$Global X Uranium ETF(URA)$ $Sprott Uranium Miners ETF(URNM)$ $SPROTT JUNIOR URANIUM MINERS ETF(URNJ)$