Is there a uranium ETF listed on the ASX?

The uranium sector is booming thanks to skyrocketing spot prices. What are the investment options?

| More on:
A miner stands in front oh an excavator at a mine site

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Uranium stocks are going nuclear as the industry booms from surging spot prices.

According to S&P Global, uranium spot prices rose sharply to a 9-year high of US$48/lb on Wednesday.

But for Australians looking for investment exposure in the energy metal, good luck trying to find an ASX exchange-traded fund (ETF) that focuses on uranium.

Why isn’t there an ASX uranium ETF?

Uranium is a far less popular commodity than the likes of resources such as iron ore, copper or gold.

As a matter of fact, the energy metal doesn’t even trade on an open market. Buyers and sellers typically negotiate contracts privately.

For investors looking to gain uranium exposure on the ASX, the most realistic option is to invest in individual energy companies.

The largest ASX-listed uranium player is Paladin Energy Ltd (ASX: PDN). The $2.7 billion company operates the “globally significant” Langer Heinrich Mine in Namibia. In March, Paladin Energy successfully raised $192.5 million to clear debt and pave the way to restart its uranium operations.

Energy Resources of Australia Limited (ASX: ERA) is another major player in the ASX-listed uranium space, boasting a market capitalisation of around $1.7 billion.

Paladin Energy and Energy Resources of Australia are arguably the most established uranium companies on the ASX. However, there’s a number of emerging players and explorers to also choose from.

Boss Energy Ltd (ASX: BOE) is a $700 million uranium explorer operating the Honeymoon uranium project in South Australia. The company is looking to ramp up exploration activities to drive a final investment decision for Honeymoon in the next 12 months.

Other prospective explorers include Deep Yellow Limited (ASX: DYL), Peninsula Energy Ltd (ASX: PEN) and 92 Energy Ltd (ASX: 92E).

While there isn’t exactly a diversified ASX uranium ETF, there are certainly a number of companies operating at different stages of the exploration and production lifecycle to investigate.

What about international markets?

The Global X Uranium ETF is listed on the New York Stock Exchange and provides investors access to a broad range of companies involved in both uranium mining and the production of nuclear components.

Another major uranium ETF is Sprott’s Physical Uranium Trust, listed on Canada’s Toronto Stock Exchange. The trust is the world’s largest actively managed uranium fund that provides investment exposure to physical uranium.

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ETFs

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.

Experts say these top ETFs are buys right now

Here are two ETFs that experts think investors should be looking at...

Read more »

recreational fisherman holding fishing rod and hands apart indicating it was this big with smile on his face

Here’s how much the Vanguard Australian Shares Index ETF (VAS) has paid in dividends over the past 5 years

How much dividend income does the VAS ETF throw off exactly?

Read more »

Man looking amazed holding $50 Australian notes, representing ASX dividends.

2 excellent ASX ETFs to buy for dividends

These ETFs provide plenty of income for investors...

Read more »

ETF written on cubes sitting on piles of coins.

Here’s why the iShares S&P 500 ETF (IVV) has climbed 7% in a month

It’s been a solid few weeks for US shares. What’s happening?

Read more »

A cute young girl wears a straw hat and has a backpack strapped on her back as she holds a globe in her hand with a cheeky smile on her face.

2 reasons to consider buying the Vanguard International Shares ETF (VGS) right now

What's to like about this popular ETF from Vanguard?

Read more »

A man sits bolt upright watching something intently on his television.

2 quality ETFs for ASX investors to buy in August

Here are two top ETFs to buy...

Read more »

The letters ETF sit in orange on top of a chart with a magnifying glass held over the top of it

3 top ETFs for ASX investors to buy next week

These highly rated ETFs could be in the buy zone...

Read more »

ETF written in blue with a man and woman sitting on their laptops.

2 exciting ETFs for ASX investors to buy today

Here are a couple of highly rated ETFs...

Read more »