Uranium ETF

Uranium ETF for Energy investing

The ETF or exchange traded fund is a financial vehicle that provides a way for investors who do not participate to the fullest extent in trading activities to become involved in current trading strategies.  The beauty of the ETF is you need not be all too knowledgeable about the fund’s underlying assets; or possess a great deal of accompanying information pertinent to the companies that comprise the exchange traded fund.  What you are required to possess is a reasonable level of confidence in the investment trend of a particular class:  It is then you may invest by merely buying an ETF; comprised of a myriad of worthwhile stocks.  The preceding uranium ETF is similar in structure and trading function to a gold ETF; or silver ETF.

Investors will find it not too surprising that stocks associated with Uranium have fallen as to value.  This naturally is due a great deal to the backlash against nuclear power which is present on a global basis after the events which have recently occurred in Japan.  The question that is posed presents as:  Is the response over-reactionary; as many times is the case pertinent to such events; or are we truly seeing the beginnings of what is the end of global nuclear power?

So why is Uranium an investment option worth considering—that is, in light of the preceding question?  One reason may be:  fossil fuels, worldwide are slowly being depleted.  If fossil fuels are not available in way of an energy source; there are minimal options which to choose, especially in a world which thrives on (such) power.  The other alternative energy sources include:  water, wind and uranium.  The energy cost associated with uranium is the least substantial; and in light of the low cost, uranium is by far the best energy source which to (alternatively) place (our) emphasis.  Also, there are more nuclear reactors being built than ever before:  This fact alone signals it is unlikely there will not be any uranium shortage which to concern ourselves for the next decade or thereafter.


Global X Uranium ETF (URA – Uranium Exchange Traded Fund ETF)

There is an interesting new investment option available in the way of a(n) Uranium ETF:  The fund’s emphasis is placed on Uranium.  The fund saw its infancy in the Autumn of 2010.  The exchange traded fund is inclusive of around 23 to 24 corporations which are involved on one level or another in the manufacturing process associated with uranium.  Certain companies are merely involved in  exploratory processes; while other companies work in the mining and production areas.  Other companies associated with the uranium (themed) ETF are involved in constructing manufacturing equipment used in the mining of uranium.

Around fifty-percent of the fund’s companies originate in Canada—which may not be at all surprising to many investors.  One third of the companies inside the fund are from the Land Down Under.  Fifteen percent of the ETF’s companies are based in the United States.  The fund’s top companies include: Uranium One; and Cameco which comprise about fifteen percent of the fund’s makeup.  Paladin Resources constitutes one-tenth of the fund’s portfolio.  Other highly regarded companies within the fund include Uranium Energy and Denison which make up approximately 5% of the exchange traded fund.

(PKN) – Uranium ETF

PKN was began in April 2008.  The fund requires more investment-wise than RUA.  The expense ratio on a per annum basis is seventy five hundredths percent.  (.75%).  The fund’s index watches closely the activities of companies within the nuclear sphere.  Companies involved in the manufacture of nuclear reactors; production and manufacture of nuclear equipment; nuclear service providers, utilities; and entities engaged in the building of nuclear power plants or production facilities are all watched closely by the fund’s corresponding Index.  The fund, mentioned is comprised of nuclear-related corporations such as Uranium One (which you may recall is also part of the Global X Uranium ETF); Scientific, Thermo Fisher, and Areva.

(NLR) – Uranium ETF

The Uranium ETF referred to as NLR is representative of a more middle of the road position as it pertains to URA and PKN.  In other words:  NLR is somewhere between the two preceding two ETFs.  URA’s purpose is designed for investors interested in a true Uranium themed ETF.  PKN is much broader in its focus with regard to Nuclear Energy.  There are some similarities between NLR and PKN as far as the underlying assets; however as is demonstrated with Uranium One:  this is where the distinguishable line is drawn between the two funds  NLR started or was launched in August 2007.  Expense ratio on a per annum basis is .62%.    A respectable forty percent of the fund is comprised of companies which mine uranium; while twenty five percent of the companies included are involved in generation of nuclear power.  The remaining companies are involved in the areas of transporting nuclear fuel; storage of Uranium;  and activities associated with constructing nuclear facilities and equipment manufacture.  NLR’s makeup as far as underlying assets is what distinguishes it from a more organic Uranium based ETF such as URA.  Regardless, you can still find areas that overlap between the two funds.  It is certain you will find established companies part of the makeup of NLR in the way of Paladin; and Cameco just as you would find within the portfolio (arrangement) of URA.

Persons interested in a(n) uranium ETF may pose the question:  What precisely, then, is uranium?  The most common form of uranium is referred to as Uranium-238.  Its half life is approximately four billion years old.   The exceptionally slow half life indicates the element is more dependable than any element with a half life which is less.  Uranium-235 is another significant form of uranium.  Uranium-235 is useful in that it can withstand what is referred to as induced fission.  When an element classified as stable is presented with a neutron:  induced fission is the result.  The introduction of the neutron within the preceding scenario manufactures an element which is unstable; and as a result splits in two to create two elements which are stable.  The split causes the occurrence of resulting high levels of heat.  The heat which occurs as a result of induced fission can be used in the heating of water; providing  power or energy for steam turbines.  The steam turbines are able to produce electricity. here is a uranium stocks list that are there listed in the stock market for direct investing.

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