Earlier this year, uranium prices saw temporary relief after U.S. and five other permanent United Nations Security Council members backed plans for Iran to receive a 116 metric tons of natural uranium, with a huge shipment of natural uranium from Russia.
The uranium market has also been steadily strengthening as negative sentiment surrounding the 2011 Fukushima disaster in Japan reverse. Japan has been paving way for its nuclear power plants to restart operations. Still, there are concerns regarding URA.
“The structure of URA is horrendous. 15 of the 22 stock holdings are penny stocks in the true sense i.e. a stock price less than $1. I expect that the majority of these companies will fail in the next couple of years, or suffer large cash infusions that will dilute shareholder equity,” notes Seeking Alpha.
Since Election Day, plenty of sector and industry exchange traded funds have emerged as beneficiaries of Donald Trump’s stunning victory. One of the Trump trade ideas, and one accessible via ETFs, that is flying somewhat under the radar is nuclear energy.
Another ETF for accessing the nuclear trade is the VanEck Vectors Uranium+Nuclear Energy ETF (NYSEArca: NLR), which takes a broader approach, including exposure to large and more stable utilities.