HANetf new Sprott Junior Uranium Miners UCITS ETF hits the market, focused on smaller miners
London, UK
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March 08, 2024 06:42 AM Eastern Standard Time
HANetf head of research Tom Bailey discusses the launch of the Sprott Junior Uranium Miners UCITS ETF (URNJ) on the LSE and Deutsche Bourse, highlighting the growing demand for uranium due to the global shift towards nuclear energy for low carbon emissions and energy security.
Bailey explained that this demand, coupled with a decade of underinvestment in uranium mining, has created a supply-demand imbalance, boosting uranium prices significantly.
The Junior Uranium Miners ETF focuses on smaller-cap miners, which are poised to benefit more directly from the rising uranium prices compared to their larger counterparts. This is because larger mining companies often have long-term contracts at lower prices, whereas junior miners sell at current high prices. The ETF includes exploration companies, offering exposure to early-stage ventures that might bring uranium to market in the future.
Unlike HANetf's flagship uranium ETF, the Sprott Uranium Miners UCITS ETF (URNM), which is significantly influenced by a few large companies, the junior ETF aims to provide a more balanced exposure by excluding these major players and the spot price of uranium. It features 32 companies, excluding the five largest that dominate the flagship ETF.
In its first week, the junior ETF saw an 11-12% increase in price performance, outperforming the broader uranium ETF, which increased by 1% in the same period, indicating strong investor interest and market performance.
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