3 Uranium ETFs That Pack a Nuclear Punch

Uranium prices have moderated but remain supported by the AI revolution and other long-term trends. Uranium ETFs can capture upside from rising power demand.

uranium element U92
(Image credit: Getty Images)

Nuclear energy has returned to favor, a trend reflected in the prices of uranium ETFs.

This too is an artificial intelligence story.

The AI revolution as well as a confluence of other real-world developments is driving rapid growth in electricity demand, with many folks seeking out greener power sources to replace the likes of oil and coal.

And the past couple of years have been a clear reminder for several countries that they'd be best served becoming energy-independent from Russia.

These are among numerous long-term drivers. But they're not the whole story behind price action for uranium.

Much of uranium's buoyancy can be chalked up to rising demand, yes, but also constrained supply.

Years of low prices forced many smaller uranium miners to shut down or throttle down production, and larger miners have spent precious little in capital expenditures to improve their operations.

That process has reversed, with supplies rising as uranium prices surged. And uranium futures reached 18-month lows amid generally sufficient supply.

Nonetheless, the horizon continues to brighten for nuclear energy, and in turn, the small collection of publicly traded uranium stocks … the uranium ETFs that hold them.

It's a good time to 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 just over $5 billion in assets.

But the best ETFs in the uranium space can provide a few different types of exposure to this rocketing commodity.

Data is as of March 25. Yields represent the trailing 12-month yield, which is a standard measure for equity funds.

Kyle Woodley

Kyle Woodley is the Editor-in-Chief of WealthUp, a site dedicated to improving the personal finances and financial literacy of people of all ages. He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more.

Kyle was previously the Senior Investing Editor for Kiplinger.com, and the Managing Editor for InvestorPlace.com before that. His work has appeared in several outlets, including Yahoo! Finance, MSN Money, Barchart, The Globe & Mail and the Nasdaq. He also has appeared as a guest on Fox Business Network and Money Radio, among other shows and podcasts, and he has been quoted in several outlets, including MarketWatch, Vice and Univision. He is a proud graduate of The Ohio State University, where he earned a BA in journalism.

You can check out his thoughts on the markets (and more) at @KyleWoodley.