"The VanEck Uranium and Nuclear ETF has surged 75% over the past year, climbing from around $84 in January 2025 to $146.60 today. With $3.6 billion in assets, this fund concentrates on uranium miners and nuclear utilities, betting that renewed interest in carbon-free baseload power will translate into sustained demand for nuclear fuel and infrastructure. The question now is whether this momentum can continue or if the rally has gotten ahead of fundamentals."
"Everything in this ETF hinges on uranium prices. Spot uranium traded around $90 per pound in early 2025 and has climbed toward $100 recently, driven by supply constraints and growing reactor demand. Kazakhstan's Kazatomprom, the world's largest uranium producer, has signaled production challenges, while Western utilities are scrambling to secure long-term contracts outside of Russian supply chains. If uranium prices continue rising, the miners in NLR's portfolio should benefit through higher margins and production expansions."
The VanEck Uranium and Nuclear ETF rose about 75% over the past year, from roughly $84 to $146.60, and holds $3.6 billion in assets. The fund concentrates primarily on uranium miners and nuclear utilities, with about 45% in mining and enrichment, 20% in utilities, and the remainder in advanced reactor developers that are pre-revenue. The ETF's performance depends on uranium spot prices, which moved from about $90 to near $100 per pound amid supply constraints and increased reactor demand. Key risks include uranium price volatility, production challenges at major producers, inventory dynamics, and divergence among individual holdings.
Read at 24/7 Wall St.
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