Global X ETFs Australia (formerly ETF Securities) has launched a uranium ETF - the Global X Uranium ETF (ATOM) which will give investors exposure to the growing global uranium and nuclear power sector.
The ETF tracks the Solactive Global Uranium & Nuclear Components Total Returns Index which comprises of approximately 46 global companies involved in uranium mining nuclear components production. It includes companies involved in extraction, refining, exploration, or manufacturing of equipment for the uranium and nuclear industries.
"Nuclear power capacity is set to dramatically increase in the coming decades, with projections anticipating a 17 per cent rise from current levels by 2035 and another 71.5 per cent by 2050, head of investment strategy, Blair Hannon, said
"The case for uranium is perhaps the strongest it's been in a decade, and this is where we see the investment appeal for Australian investors," Hannon said.
Australian companies in the index include BHP and Rio Tinto, along with Elevate Uranium and Paladin Energy
"As governments pledge to reduce fossil fuel reliance, nuclear could be a viable bridge while more renewable capacity is built. Increasing adoption is anticipated to drive up uranium prices over the medium to long-term as supply will not come to market fast enough to keep up with demand," Hannon said.
Global X has also listed an ETF that provides access to a global basket of copper miners, called the Global X Copper Miners ETF (WIRE).
Global X says the ETF offers investors access to companies which stand to benefit as they are a key part of the value chain facilitating growth in major areas of innovation such as technology, infrastructure and clean energy.
The ETF tracks the Solactive Global Copper Miners Total Return Index and has a management fee of 0.65 per cent per annum.