Exchange Traded Concepts launches Uranium Mining ETF
Exchange Traded Concepts (ETC), a leader in providing white label Exchange Traded Fund (ETF) solutions, in conjunction with North Shore Indices, has launched the North Shore Global Uranium Mining ETF (URNM).
URNM is a targeted play on the uranium mining sector, that offers efficient access to a global, basket of companies in the Uranium industry. This fund offers a thematic play on potential nuclear power demand growth and uranium supply deficits. The ETF tracks the North Shore Global Uranium Mining Index which is a focused uranium mining index. The index holds both miners and holders of physical uranium. It is currently tilted towards junior miners.
Uranium as a commodity has long been misunderstood due to the complexity and opacity of the nuclear fuel cycle. After experiencing a peak price of nearly USD140/lb. in 2007, prices have declined by over 80 per cent, mainly due to oversupply. According to Numerco, as of 12 December 2019 the spot price of physical uranium was approximately USD26/lb.
“We are excited to be working with Exchange Traded Concepts on the URNM ETF. The fund represents a timely launch that will offer a broad range of investors access to a much-needed unique play on the uranium sector. After a multi-year bear market, we believe that the uranium sector is at an inflection point. The fundamentals of the industry have improved on the back of strong nuclear power demand growth and global supply cuts which have pushed the market into a deficit,” says Tim Rotolo, CEO & Founder of North Shore Indexes. “Given the current state of uranium mining economics, a considerable price rise will be required if new mines are to be brought on line to meet the future supply needs.”
Focused on companies with exposure to the uranium sector, this newly created Global Uranium Mining ETF should allow investors to benefit from potentially favorable uranium fundamentals. As the world’s thirst for clean, 24x7, emissions-free sources of alternative energy continue to grow, nuclear power is emerging as a potential means to meet this demand. According to the World Nuclear Association’s most recent Nuclear Fuel Report there are 444 operating nuclear reactors, with 54 under construction, 111 planned, and 349 proposed.
“We are thrilled to be working with the North Shore Indices team to bring this timely fund to market,” says J Garrett Stevens, CEO of Exchange Traded Concepts. “Great colleagues and great ideas are the true drivers of ETF success,” continued Stevens. “We’re very pleased to add North Shore Indices and URNM to our growing list of affiliates and innovative ETF solutions.”