Renewed global interest in nuclear energy has seen some big share price gains amongst leading ASX uranium shares, but I'd buy this ASX exchange-traded fund (ETF) instead.
As for some of the top ASX uranium shares, the Paladin Energy Ltd (ASX: PDN) share price is up 67% over the past six months. And the Boss Energy Ltd (ASX: BOE) share price has left those gains in the dust, with the ASX uranium stock gaining 114% in six months.
Those are some enviable gains.
While the ASX ETF I'm eyeing can't top Boss Energy's six-month share price gains, it has enjoyed a huge boost over the half-year. And, importantly, it's done so with a diversified portfolio of 37 Aussie and international uranium stocks.
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The ASX Betashares Global Uranium ETF has been rocketing
The ASX ETF in question is the Betashares Global Uranium ETF (ASX: URNM).
The Global Uranium ETF has gained 57% over the past half-year amid soaring uranium prices.
The marked outperformance comes thanks to a big increase in uranium prices, which are now trading at more than 10-year highs.
Demand for the radioactive element has been on the rise as Europe looks to extend the life of many of its reactors while other nations, led by China, are building a suite of new nuclear power plants to deliver reliable baseload energy without carbon emissions.
According to the latest forecasts from the World Nuclear Association, demand for the radioactive element is likely to increase sharply over the coming year. That should help support uranium miners and this ASX ETF.
The World Nuclear Association forecasts that uranium demand from global reactors in 2023 will be about 65,650 tU. At the higher end of its forecast range, demand could reach 184,300 by 2040. Even on the low end of its forecast, the Association foresees global uranium demand of nearly 87,000 tU by 2040.
If uranium demand indeed continues to pick up pace, the ASX Betashares Global Uranium ETF should provide investors with diversified exposure to the sector.
Only launched in June 2022, URNM's top holding is North American uranium giant Cameco Corp (NYSE: CCJ). And if you're wondering, the Cameco share price is up 62% over six months.
The ASX ETF also has a 4.7% weighting of Paladin shares as well as a 4.7% weighting of Boss Energy shares.
The ETF's management and cost fees come out to 0.69% annually.
