5 Best Nuclear ETFs to Buy Now

4. Global X Uranium ETF (NYSEARCA:URA)

Expense Ratio: 0.69%

Global X Uranium ETF (NYSEARCA:URA) is an ETF that tracks the performance of the Solactive Global Uranium & Nuclear Components Total Return Index and employs a full replication technique. The fund invests in companies operating in the energy, oil, gas & consumable fuels, coal & consumable fuels, and uranium ore sectors. Global X Uranium ETF (NYSEARCA:URA) has a top 10 holdings concentration of 62.59% and an expense ratio of 0.69%.

One of the top holdings of the Global X Uranium ETF (NYSEARCA:URA) is Cameco Corporation (NYSE:CCJ), one of the world’s largest providers of uranium. On August 17, GLJ Research analyst Gordon Johnson raised his price target on Cameco Corporation (NYSE:CCJ) to a “Street-high” of C$48.40 from C$37.86 and reiterated a Buy rating on the shares.

Out of the hedge funds tracked by Insider Monkey, as of June 30 Driehaus Capital is the largest shareholder in Cameco Corporation (NYSE:CCJ) and owns roughly 4.9 million shares of the company. The investment covers 1.69% of Driehaus Capital’s 13F portfolio.

Here is what Aristotle Capital Management had to say about Cameco Corporation (NYSE:CCJ) in its “Global Equity Fund” first-quarter 2022 investor letter:

“Cameco, the world’s largest publicly traded uranium producer, was a primary contributor for the quarter. After years of stringent operational discipline that included production cuts, inventory reduction and market purchases, the company has reported strengthening market fundamentals, as industry-wide supply concerns continue to abate. The improving conditions can provide Cameco significant leverage to drive higher prices under its market-related contracts. Moreover, the company has obtained 70 million pounds of additional long-term contracts since the beginning of 2021, demonstrating Cameco’s strong position to capture increasing demand. Nevertheless, management has reiterated its commitment to maintaining supply discipline while continuing to invest in operational efficiency through automation, digitization and training. As such, the company expects to see significant improvements in cash flow generation, as it ramps up to its 2024 planned production capacity. We believe Cameco’s disciplined approach and conservative financial management continue to reinforce its long-term position and its ability to return value to shareholders. This was recently demonstrated when Cameco’s board approved a 50% increase to the company’s annual dividend for 2022.”