It seems every month there is a new, specifically focussed ASX ETF hitting the market.
On Thursday, ASX ETF provider VanEck released an announcement of the next thematic fund set to hit the market.
It provides targeting exposure to uranium and nuclear energy sectors.
It will trade under the name: VanEck Uranium and Energy Innovation ETF (ASX: URAN).
Here is what the provider had to say.
Image source: Getty Images
Clean energy transition
According to VanEck, nuclear energy is considered a reliable and low-carbon source of electricity.
Unlike fossil fuel energy generation, nuclear power plants do not emit greenhouse gases when operating.
Additionally, nuclear energy has a much smaller land footprint compared to renewable sources of electricity, such as solar and wind power, and is much less resource-intensive.
The uranium-powered nuclear energy sector offers investors the opportunity to access the current leaders in uranium mining as well as technological development associated with nuclear energy.
The URAN opportunity
VanEck said the sector is positioned to meet the accelerating electricity demands from the rapid expansion of AI, computational power and digital infrastructure.
The provider listed key reasons for this targeted fund:
- Increased electricity demand resulting from the rapid expansion of AI and digital infrastructure requires new energy sources.
- Nuclear power has one of the lowest lifecycle carbon footprints among conventional energy sources, supporting global decarbonisation.
- The technological development of small modular reactors (SMRs) is allowing for flexibility and scalability.
- Many governments around the world are again embracing nuclear energy, generating significant investment into the sector.
VanEck did not yet specify what companies will make up the fund.
However, it may be placed to compete against other uranium focussed ASX ETFs such as:
- Betashares Global Uranium Etf (ASX: URNM) – exposure to leading global companies involved in the mining, exploration, development and production of uranium, modern nuclear energy, or that hold physical uranium or uranium royalties.
- Global X Uranium ETF (ASX: ATOM) – Includes companies involved in uranium mining and the production of nuclear components, including those in extraction, refining, exploration, or manufacturing of equipment for the uranium and nuclear industries.
