3 Uranium ETFs That Pack a Nuclear Punch

Uranium prices are positively radiant this year and have reclaimed prices last seen in 2014. These uranium ETFs can help you harness this power.

Nuclear power cooling towers
(Image credit: Getty Images)

A tiny corner of the commodities market is going nuclear this year. Uranium prices – and therefore uranium stocks and uranium exchange-traded funds (ETFs) – have reached critical mass.

Commodities in general have enjoyed stellar gains so far this year, thanks to the sharp economic snap-back and related burst of fast-rising prices. Indeed, shares in commodity stocks dealing in steel, aluminum, copper and a host of other hard assets tend to outperform when inflation runs hot.

Uranium, however, has been in a class of its own. Prices are up 38% year-to-date, to $42.40 per pound. That’s an increase of nearly 140% since bottoming out below $18 per pound in late 2016.

Most of the price appreciation over the past five years has been driven by a rejuvenated global search for alternative energy sources. Over the past few months, however, a new source of support emerged. The newly launched Sprott Physical Uranium Trust began purchasing copious amounts of the element.

The result? Massive gains for uranium stocks, and a gusher of new assets flowing into a handful of uranium ETFs.

Here, we explore three uranium ETFs. It's a small field – these are three of the most pure-play funds in the space, and they still collectively represent less than $1.5 billion in assets. But they can provide a few different types of exposure to this rocketing commodity.

Data is as of Sept. 12. Yields represent the trailing 12-month yield, which is a standard measure for equity funds.

Kyle Woodley
Senior Investing Editor, Kiplinger.com

Kyle is senior investing editor for Kiplinger.com. As a writer and columnist, he also specializes in exchange-traded funds. He joined Kiplinger in September 2017 after spending six years at InvestorPlace.com, where he managed the editorial staff. His work has appeared in several outlets, including U.S. News & World Report and MSN Money, he has appeared as a guest on Fox Business Network and Money Radio, and he has been quoted in MarketWatch, Vice and Univision, among other outlets. He is a proud graduate of The Ohio State University, where he earned a BA in journalism.