Investors are still investing heavily in uranium, according to ETF specialist Van Eck which has seen volumes in its fund dedicated to the metal top US$100 million for the first time.
Van Eck launched its Uranium and Nuclear Technologies UCITS ETF in Germany in February 2023, focusing on companies active in the uranium and nuclear energy sectors.
“Security concerns are currently accelerating the resurgence of nuclear energy,” explained Martijn Rozemuller, chief executive of VanEck Europe.
“Nuclear power is a viable alternative for countries without domestic oil and gas producers in order to achieve greater energy security and independence,” he said.
“Pledges to further develop capacities have boosted the prospects and share prices of companies operating in the nuclear industry, which is also reflected in the performance of our VanEck Uranium and Nuclear Technologies UCITS ETF and the steadily growing demand from investors since its launch last year.”
Companies that generate a significant proportion of their sales from uranium or nuclear energy infrastructure are eligible for the ETF.
Last year, uranium prices surged from US$54 per lb in July to around US$107 at the start of 2024, though since have eased back to just over US$84.