If you are on the lookout for some exposure to the resources sector, then analysts at Fairmont Equities have a couple of exchange traded fund (ETF) ideas to consider.
Here's what they are recommending, courtesy of The Bull, and why they could be good picks in the current environment:
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Betashares Global Uranium ETF (ASX: URNM)
If you want exposure to uranium, then the Betashares Global Uranium ETF could be worth a shout.
It provides investors with access to the leading and emerging players in the global uranium industry.
Fairmont Equities remains positive on this fund despite a strong gain in recent months. This is due to its belief that demand for uranium will outstrip supply as nuclear energy adoption jumps. Commenting on the Betashares Global Uranium ETF, its analysts said:
The fund's objective is to track the performance of an index providing exposure to a portfolio of leading companies in the global uranium industry. This exchange traded fund has risen from $5.83 on April 9 to trade at $8.79 on July 31. We remain positive about uranium miners, as we expect increasing demand for uranium to exceed supply as nuclear energy gathers pace in the next few years. Despite the strong recent performance, URNM remains a buying opportunity as we believe the ETF will move to new highs from here.
Global X Physical Silver Structured (ASX: ETPMAG)
Another area of the resources sector that Fairmont Equities is positive on is silver.
As a result, it is tipping the Global X Physical Silver Structured ETF as a fund to buy right now.
Unlike the Betashares Global Uranium ETF, which gives investors access to miners and developers, this ETF offers a low-cost way to access physical silver without the need to personally store their own bullion.
Its analysts believe that the outlook for silver is positive and expect this fund to perform strongly because of it. They said:
ETPMAG is an exchange traded fund that tracks the price of silver. The 45 year old chart for silver had been forming a large cup and handle pattern, which was an extremely bullish sign. The silver price has recently started to break out of this cup and handle formation and finally follow the bullish moves seen in the gold price. I expect ETPMAG to rally from here on the back of a bright outlook for the silver price.
