22 SEPT, 2023
By RankiaPro Europe
HANetf announced that Sprott Uranium Miners UCITS ETF (URNM) has reached $108.18 million AUM for the first time since its launch in May of last year.
September has seen uranium prices surge to a 12-year high, reaching levels not seen since prior to the Fukushima incident of 2011. Analysts have suggested that this marks a “global renaissance” for uranium.
The U3O8 spot price has posted a 29.84% year-to-date (YTD) return as of 12th September 2023, demonstrating its strength and diversification relative to other commodities, which declined -5.31% YTD, as measured by the BCOM Index.
In response to the worsening energy crisis, and the increasingly urgent need to achieve net-zero targets, global leaders are looking to alternative sources of clean energy. Nuclear power is viewed as an efficient, safe, and clean solution given that it has less CO2 emissions per GWh than wind, solar, and hydro energy.
As this “renaissance” continues, nuclear seems poised to become a leading and vital component of the net-zero transition.
URNM, which tracks the North Shore Sprott Uranium Miners Index, was launched in May of 2022 and provides exposure to the growth of nuclear power through uranium miners. Alongside uranium mining equities, URNM also invests in uranium via physical trusts – the ETF currently has around 16% direct uranium exposure.
The ETF was launched in partnership with uranium experts Sprott Asset Management, which oversee a US-listed sister uranium miners ETF with $1.18 billion AUM and a physical uranium trust with over $3.9 billion AUM. Additionally, the ETF also has exposure to physical uranium.
HANetf also launched Sprott Energy Transition Materials UCITS ETF (SETM) in March of this year, which provide exposure to the companies that are providing the critical materials needed for the global clean energy transition, such as rare earths, silver, copper, lithium, nickel, manganese, cobalt, and graphite.
"The growth of URNM has been exceptional, and we are excited to see it reach $108.18m AUM in just over a year after its launch. The price surge of uranium, and its outperformance of other commodities as measured by BCOM, is in our view demonstrative of a growing realisation that nuclear is an essential and necessary part of the net-zero transition. Sprott Uranium Miners UCITS ETF (URNM) offers exposure to the growth of nuclear power through uranium miners, which have been historically underrepresented in the energy sector, posing upside potential.”Hector McNeil, Co-Founder and Co-CEO of HANetf
By Alexis Bienvenu
By Duncan Lamont