How much would I have now if I'd invested $10,000 in Betashares Global Uranium ETF (URNM) a year ago?

Has this been a great place to invest your hard-earned money?

| More on:
A young woman holds her hand to her mouth in surprise as she reads something on her laptop.

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

The Betashares Global Uranium ETF (ASX: URNM) has been a great place to invest over the last 12 months.

Thanks to supply concerns and growing demand, the price of the chemical element has been surging. This has put a rocket under uranium stocks across the globe.

This includes companies held by the URNM ETF such as Boss Energy Ltd (ASX: BOE), Cameco Corp (NYSE: CCJ), NexGen Energy Ltd (NYSE: NXE), and Paladin Energy Ltd (ASX: PDN).

Supply concerns as demand grows

Last year, traders were bidding uranium prices higher and higher after the world's largest uranium miner, Kazatomprom, warned that it would fall short of its production targets.

This was being driven by shortages of sulphuric acid, which is a key ingredient in the production process for some uranium mills.

This couldn't have come at a worse time, with demand for uranium growing rapidly due to global governments seeing nuclear energy as a way to achieve key decarbonisation goals.

But it gets even better for the companies included in the Betashares Global Uranium ETF. In light of the above, SP Angel mining analyst John Meyer, believes that uranium prices could be on a very long upwards trajectory. According to Reuters, he said:

The market has been slowly building higher prices as mining costs rise and nuclear generators look to build stocks to guard against increasingly risky supply-side issues. We see prices rising year-on-year for next 10-20 years or till the world finds another source for large scale un-interruptible base load power with a low carbon footprint.

The World Nuclear Association was forecasting demand from nuclear reactors to be 65,650 tonnes of elemental uranium (tU) in 2023 and then almost double to 130,000 tU by 2040.

Investing $10,000 in the Betashares Global Uranium ETF URNM

If I had invested in the Betashares Global Uranium ETF a year ago, I would be smiling widely today.

During this time, the fund has absolutely smashed the market with a return many times the average for the period.

For example, if I had invested $10,000 into the URNM ETF in April 2023, I could have picked it up for $5.63 per unit. This means I could have snapped up 1,777 units for a total investment of $10,004.51.

Today, the Betashares Global Uranium ETF is fetching $9.81. This is 74.2% higher than the price I would have paid a year ago.

So, my 1,777 units would now have a market value of $17,432.37. That's a sizeable $7,427.86 more than my original investment in the URNM ETF after just 12 months. Impressive!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Cameco. The Motley Fool Australia has recommended Betashares Global Uranium Etf. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Energy Shares

A female coal miner wearing a white hardhat and orange high-vis vest holds a lump of coal and smiles as the Whitehaven Coal share price rises today
Broker Notes

1 ASX 200 energy stock with 'minimal competition' to buy right now

This stock is trading 30% lower than its 2022 record high.

Read more »

A miner in visibility gear and hard hat looks seriously at an iPad device in a field where oil mining equipment is visible in the background.
Energy Shares

Oil price spikes on Iran's attack. Now what?

The oil price remains near six-month highs as the world awaits Israel’s response to Iran’s drone and rocket attack.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Energy Shares

Why is the New Hope share price sinking on Monday?

What's going on with this coal miner's shares?

Read more »

A miner in visibility gear and hard hat looks seriously at an iPad device in a field where oil mining equipment is visible in the background.
Energy Shares

2 ASX 200 energy stocks to buy for oil and uranium exposure

Analysts think these energy stocks could offer decent upside for investors.

Read more »

Happy man standing in front of an oil rig.
Energy Shares

Broker says Woodside share price weakness is a buy opportunity

Now could be a buying opportunity for investors according to Wilsons.

Read more »

2 workers standing in front of a wind farm giving a high five.
Energy Shares

Origin shares fall despite 'highly strategic' $300m renewable energy acquisition

Origin is taking a big step in its clean energy transition.

Read more »

Copal miner standing in front of coal.
Energy Shares

Should ASX investors buy the dip in Whitehaven stock?

We review the latest broker ratings on this ASX coal share.

Read more »

A young man stands facing the camera and scratching his head with the other hand held upwards wondering if he should buy Whitehaven Coal shares
Energy Shares

Are Paladin Energy shares really surging 900% today?

What's going on with this uranium stock today?

Read more »