For the latest standardized performance and holdings of Sprott Uranium ETFs, please visit the individual website pages: URNM and URNJ. Past performance is no guarantee of future results.
Uranium prices appear to have come out of sleep mode. A steady price climb in the past decade followed by a spike in the last few years gave way to a correction. But momentum is firmly behind the metal again.
Uranium prices hit a peak in February 2024 before pulling back through early 2025. With executive orders under President Trump that provide staunch support of the nuclear power industry, investors are more clear on the direction of the administration.
Disruptive technology like AI will place a heavy burden on energy infrastructure to feed power-hungry data centers. As such, nuclear power is becoming a more viable alternative that could eventually become imperative over the coming years. The current presidential administration is certainly aware of this growth trajectory given the ambitious plans of the executive orders.
“These directives represent the most ambitious nuclear policy framework in decades, with implications for national security, AI infrastructure, energy independence and industrial revitalization,” Sprott ETF product manager Jacob White said in a Sprott Uranium Report.
Strong-Performing Asset Last 5 Years
The recent price uptick reveals short-term strength. However, uranium has been building momentum over time.
Figure 1. Physical Uranium and Uranium Stocks Have Outperformed Other Asset Classes Over the Past Five Years (31/05/2020-31/05/2025)
Looking at the performance comparisons in the chart above, uranium miners have been blowing past U.S. equities and commodities in general. Rather than make a play on spot prices or futures contracts, uranium miners provide a compelling option. For those looking for broadly diversified exposure across various market cap sizes, then consider this indirect exposure via the Sprott Uranium Miners ETF (URNM).
Similar to other commodities, uranium offers investors a chance to diversify their portfolios with exposure that’s uncorrelated to traditional assets. URNM tracks the North Shore Global Uranium Mining Index that follows the performance of companies involved in the uranium mining industry. The index includes companies engaged in the mining, exploration, development, and production of uranium.
Mining exposure isn’t all that investors get with URNM. Included in the fund’s holdings is physical uranium or uranium royalties. It also invests in firms that hold the physical metal, or that derive royalties from it.
Reconsider Small-Caps
While uranium mining funds like URNM can capture growth potential, the "Sprott Junior Uranium Miners ETF":https://sprottetfs.com/urnj-sprott-junior-uranium-miners-etf/ (URNJ) does that and then some. This is because URNJ adds a tilt toward small-caps. That said, the current market environment could be ripe for reconsidering small-cap exposure.
“Despite declines in indexes like the S&P MidCap 400 and Russell 2000, improved business sentiment and easing inflationary pressures provide a cautiously optimistic backdrop for identifying potential opportunities in undervalued small caps,” Yahoo Finance said.
Those who don’t mind the added volatility of small-caps should certainly consider URNJ. The risk/reward potential of small-caps combined with uranium demand could be worth the opportunity cost.
Rather than create a portfolio comprising small-cap stocks focused on uranium mining, URNJ is an easier option. The fund tracks the Nasdaq Sprott Junior Uranium Miners Index, which encompasses mid-, small-, and micro-cap companies involved in uranium mining.
Easing the Volatility
To balance exposure, the fund also invests in midcap companies. Midcap exposure can help ease the volatility inherent in small-cap and microcap exposure. Midcaps are the Goldilocks option that melds small-cap growth potential with the stability characteristics of large-cap companies.
For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Channel.
An investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Prospectus, which contains this and other information, contact your financial professional or call 888.622.1813. Read the Prospectus carefully before investing, which can also be found by clicking one of the links below.
Past performance is no guarantee of future results. One cannot invest directly in an index.
S&P 500 Total Return (TR) Index includes both the price changes of the 500 largest U.S. companies and the reinvestment of dividends.
The U3O8 Spot Price is the current market price for one pound of uranium oxide (U3O8), a key material used in nuclear fuel.
Bloomberg Commodity Index (BCOM) tracks the prices of 23 different commodity futures, including energy, metals, and agriculture.
S&P MidCap 400 is a stock market index that tracks the performance of 400 midsized U.S. companies.
Russell 2000 is a stock market index that measures the performance of the smallest 2,000 companies in the broader Russell 3000 Index.
North Shore Global Uranium Mining Index tracks companies involved in uranium mining and those holding physical uranium. Nasdaq Sprott Junior Uranium Miners Index tracks the performance of small- and mid-sized companies that are primarily engaged in uranium mining, exploration, and development.
Funds that emphasize investments in small/mid-cap companies will generally experience greater price volatility. Diversification does not eliminate the risk of investment losses. ETFs are considered to have continuous liquidity because they allow an individual to trade throughout the day. A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses, affect the Fund’s performance.
Sprott Asset Management USA, Inc. is the Investment Adviser to the ETFs. ALPS Distributors, Inc. is the Distributor for the ETFs and is a registered broker-dealer and FINRA Member. ALPS Distributors, Inc. is not affiliated with Sprott Asset Management USA, Inc. or VettaFi.
Exchange Traded Funds (ETFs): GBUG, SLVR, SETM, LITP, URNM, URNJ, COPP, COPJ, NIKL, SGDM and SGDJ
