Uranium ETF Fights off Commodity's Slump

In what amounts to a vexing scenario, the Global X Uranium ETF (NYSEArca: URA), which tracks uranium miners, is up more than 4% over the past month and more than 8% year-to-date even as uranium prices slide.

With nuclear energy industry looking brighter, uranium demand is expected to rise. According to the World Nuclear Association, the number of new nuclear plants due to go online this year and in the next three years is expected to total around 40, and more are planned in the years ahead, mostly in Asia, writes Lawrence Williams for Mineweb.

Last week, Cameco (NYSE: CCJ), one of the most widely followed uranium stocks, posted a surprise first-quarter loss.

“After adjustments, the company reported a loss of 2 Canadian cents per share, compared with a year-ago profit of 18 Canadian cents per share. Revenue fell 30 percent to C$408 million. ($1 = C$1.25),” according to Reuters.

Uranium remains controversial even five years after the 2011 Fukushima disaster in Japan. In response to the fallout, anti-nuclear activists have aggressively petitioned courts to block restarting the plants.

Nevertheless, the court’s response may reflect more favorable opinions in some areas.


Although URA has been rising this year, there are short-term factors hampering the uranium space.