This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Uranium Miners Dig Up Solid Returns

URA has had phenomenal success, attracting more than $215 million in assets under management since its launch in November 2010. It tracks the Solactive Global Uranium Index and holds 24 companies involved in uranium mining. Investors should be aware that URA's top three holdings carry a 43% weighting, with almost 20% going to Cameco. URA is also the most liquid ETF within the nuclear energy space and has an average daily dollar volume of over $5.5 million.

NLR and URA are considered high-beta plays on the nuclear energy sector and will be more volatile than PKN or NUCL. In yesterday's broad-market selloff, URA dropped 5.5% while NUCL dropped only 2.7%. The underlying holdings in NLR and URA also make the funds more vulnerable to volatility in uranium prices.

Even with the risks, NLR and URA garner tremendous investor attention. PKN and NUCL may provide more cushioning in a down market due to their broader exposure, but if the global economic recovery accelerates, and uranium prices continue their latest uptrend, expect URA and NLR to continue their outperformance. For nuclear energy bulls looking to juice their returns and ride the current commodity gravy train, URA and NLR may be the way to play nuclear energy.

At the time of publication, Hougan held no positions in the stocks mentioned.

Matt Hougan is president of ETF Analytics and global head of editorial for IndexUniverse. In this role, he serves as editor-in-chief of IndexUniverse.com and the Exchange-Traded Funds Report (ETFR), and senior editor of Journal of Indexes.

Under Hougan's leadership, the Exchange-Traded Funds Report is a repeat winner of the "Best ETF-Focused Publication" award at the Capital Link Closed-End Fund and Global ETF Conference. He was recently named to the ETFdb "ETF Hall of Fame."

Hougan graduated from Bowdoin College with a degree in philosophy.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%
YHOO $44.52 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs