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Quarterly Uranium ETF (URA) Commentary

Aug 15, 2023

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The Q2 2023 Uranium Quarterly Report can be found here, offering insights on nuclear and uranium news and performance of the Global X Uranium ETF.

Key News of the Quarter

  • India is reviewing its atomic energy law. The law governing atomic energy in India is currently under review to let private enterprises into the state-controlled nuclear industry.1
  • Canada is returning to nuclear power after a 30-year pause. To satisfy the spike in demand, in addition to enlarging an existing plant to become the largest in the world, Ontario plans to construct three compact modular reactors on the same site where another is being constructed.2
  • Pakistan and China sign $4.8 billion nuclear power plant deal. The deal to build a 1,200-megawatt nuclear power plant. The Chashma 5 project will be developed in the heart of Punjab. Pakistan’s transition away from dependency on fossil fuels will be aided by China’s cooperation.3
  • Turkey aims for 20 GW of nuclear by the mid-2050s. Turkey is in discussions with the USA, UK, and China for small modular reactors (SMRs), as well as with Russia, China, and South Korea regarding its second and third nuclear power projects.4
  • US aims to accelerate deployment of new nuclear. The Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy (ADVANCE) Act of 20235, put forth to the US Senate by a bipartisan group, seeks to support initiatives to develop and deploy new nuclear technologies at home and abroad through actions like facilitating the repurposing of conventional energy sites and providing regulatory support for the deployment of advanced nuclear technologies.
  • France commits more than €100 million to reviving the nuclear industry. France’s Ministry of Energy Transition invested over €100 million ($108 million) in civil nuclear training, research, and innovation. This follows President Emmanuel Macron’s February 2022 “rebirth of France’s nuclear industry” and October 2021 “France 2030” investment plan.6
  • UK aims to increase energy security with nuclear energy. The UK is looking to boost energy security with small modular reactors (SMR) by hosting Great British Nuclear, an international competition for innovation in SMR technology and creating new types of nuclear bodies.7
  • Sweden is looking to triple nuclear power. Sweden needs to triple nuclear power capacity over the next two decades to fulfil rising electricity demand. The government’s power strategy relies on new nuclear facilities.8

For performance current to the most recent month- and quarter-end, please click here. The Fund’s investment objective and investment strategies changed effective May 1, 2018 and again on August 1, 2018. Hybrid index performance (noted as “SOLURANT Index” above in the chart) reflects the performance of the Solactive Global Uranium Total Return Index through April 30, 2018, the Solactive Global Uranium & Nuclear Components Transition TR Index through July 31, 2018, and the Solactive Global Uranium & Nuclear Components Total Return Index thereafter.

DEFINITIONS

Solactive Global Uranium & Nuclear Components Total Return Index: The Solactive Global Uranium & Nuclear Components Total Return Index tracks the price movements in shares of companies which are (or are expected to be in the near future) active in the uranium industry. This particularly includes uranium mining, exploration, uranium investments and technologies related to the uranium industry. The Index will include a minimum of 20 components at every rebalancing.

Category: Articles

Topics: Commodities

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Investing involves risk, including the possible loss of principal. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Narrowly focused investments may be subject to higher volatility. There are additional risks associated with investing in Uranium and the Uranium mining industry. URA is non-diversified.

Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Beginning October 15, 2020, market price returns are based on the official closing price of an ETF share or, if the official closing price isn’t available, the midpoint between the national best bid and national best offer (“NBBO”) as of the time the ETF calculates current NAV per share. Prior to October 15, 2020, market price returns were based on the midpoint between the Bid and Ask price. NAVs are calculated using prices as of 4:00 PM Eastern Time. The returns shown do not represent the returns you would receive if you traded shares at other times. Indices are unmanaged and do not include the effect of fees, expenses or sales charges. One cannot invest directly in an index.

Carefully consider the Fund’s investment objectives, risks, and charges and expenses before investing. This and other information can be found in the Fund’s summary or full prospectuses, which may be found on globalxetfs.com. Please read the prospectus carefully before investing.

Global X Management Company LLC serves as an advisor to Global X Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Global X Management Company LLC or Mirae Asset Global Investments. Global X Funds are not sponsored, endorsed, issued, sold or promoted by Solactive AG, nor does Solactive AG make any representations regarding the advisability of investing in the Global X Funds. Neither SIDCO, Global X nor Mirae Asset Global Investments are affiliated with Solactive AG.