The Global X Uranium (NYSEArca: URA) exchange traded fund (ETF) soared today, at times moving as much as 4% higher. The source of the big moves may not come as a huge surprise.
Rapid growth in China has led to a search for a different kind of fuel.
Resource Investing News on The Street reports that most of mainland China’s electricity is currently produced from fossil fuels and it’s in the early stages of developing other fuel sources, such as shale gas. The pollution and difficulty of transporting coal is putting pressure on the power source for China’s growing population.
Those issues are having the net effect of leaving the door open a crack for uranium mining companies and their investors. [China Gives Power to Uranium ETFs.]
China, however, isn’t the only country getting in on uranium.
Diana Kinch of Dow Jones Newswire on NASDAQ reports that Brazil’s uranium enrichment capacity will be expanded this year to meet rising demand. Nearly $700 million will go toward buyilding converters and centrifuges.[Nuclear ETFs May Get A New Power Source.]
You might think uranium is an esoteric investment, but in addition to the pure-play launched by Global X last year, there are three nuclear energy-focused ETFs that also give you the opportunity to play the growing implementation of nuclear power:
- PowerShares Global Nuclear (NYSEArca: PKN)
- Market Vectors Nuclear Energy (NYSEArca: NLR)
- iShares S&P Global Nuclear Energy (NYSEArca: NUCL)
- Global X Uranium (NYSEArca: URA)
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.