Investors interested in gaining exposure to the sector can look at ETFs that target uranium mining.
The Global X Uranium ETF (NYSEArca: URA) follows the 23 global uranium mining companies, with a 60% weight toward Canada, 20% in Australia and 11% in the U.S. The ETF has a hefty 23.2% weight toward Cameco Corp (NYSE: CCJ). Chang of Cantor Fitzgerald believes that Denison Mines (NYSE: DNN), which makes up 10.0% of URA, and Fission Uranium Corp, which is 1.2% of URA, are two prime targets for Cameco.
The Market Vectors Uranium+Nuclear Energy ETF (NYSEArca: NLR) takes a broader approach, including exposure to large and more stable utilities companies at 32.4% of the portfolio, along with uranium producers – NLR holds 4.3% in CCJ and 4.9% in DNN. Additionally, the ETF includes a 24.7% weight toward Japan, followed by 21.5% in France and 20.2% in the U.S.
The Global X Uranium ETF is up 2.8% year-to-date, while the Market Vectors ETF has gained 2.3%. Over the past year, URA was down 23.1% and NLR was up 16.7%. [Nuclear Energy ETFs Powering Up]
For more information on uranium stocks, visit our uranium category.
Max Chen contributed to this article.