Horizons Introduces Canada’s First Uranium ETF

Investors looking for another way to get involved in the uranium sector can rejoice — on Thursday (May 16), Horizons ETFs Management, a leader in the exchange-traded fund (ETF) sector, launched Canada’s very first uranium ETF.

The Horizons Global Uranium Index ETF began trading Thursday morning on the Toronto Stock Exchange under the ticker symbol HURA. Units started at C$10.14.

Designed to give investors direct exposure to the C$15 billion global uranium sector, HURA is capitalizing on the expanding nuclear energy sector and its need for long-term stable supplies of U3O8.

“There is a realization at the highest levels that wind and solar energy alone will not be able to ensure global carbon emission targets are met,” said Nick Piquard, portfolio manager and options strategist at Horizons ETFs, in a press release.

“Today, nuclear is the only viable solution to supply zero emission-base-load-power, and currently, there is not enough uranium being mined to meet planned growth. These factors combined make for a very positive opportunity for the uranium mining sector.”

While some may wonder why the latest uranium-focused ETF has been launched in Canada, Horizons ETFs cites country’s ranking as second largest uranium producer as part of the motivation.

Saskatchewan’s Athabasca Basin hosts a number of high-profile uranium companies, including Cameco (TSX:CCO,NYSE:CCJ), the global leader. The area also ranks highly on the Fraser Institute’s list of hospitable and favorable mining jurisdictions.

The region of Saskatchewan has seen increased uranium exploration in recent years and is considered to have some of the highest-grade uranium deposits in the world.

According to Horizons ETFs, the introduction of HURA aims to replicate the performance of the Solactive Global Uranium Pure-Play Index.

The ETF will provide access to issuers that are chiefly involved in uranium exploration and mining, as well as those that invest in and participate directly in the physical price of uranium. Lastly, it will track stocks that are available on global stock exchanges in developed markets.

Its top holdings are Cameco, Kazatomprom (FWB:0ZQ), Uranium Participation (TSX:U,OTC Pink:URPTF) and Nexgen Energy (TSX:NXE,NYSEAMERICAN:NXE), all with weightings above 5 percent.

Rounding out the top 10 are Yellow Cake (LSE:YCA,OTC Pink:YLLXF), Denison Mines (TSX:DML,NYSEAMERICAN:DNN), Uranium Energy (NYSEAMERICAN:UEC), Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU), Fission Uranium (TSX:FCU,OTCQX:FCUUF) and Ur-Energy (TSX:URE,NYSEAMERICAN:URG).

“Global mining ventures can carry significant investment risks. By investing through a diversified ETF like HURA, you can potentially achieve greater stability and risk-mitigation to your uranium-sector exposure,” added Piquard.

“Our global basket approach to the uranium sector provides access to production happening across the globe — from the world’s largest in Kazakhstan to emerging mining operations in the United States.”

Aside from this new ETF from Horizons ETFs, investors interested in uranium funds have limited options. While the Global X Uranium ETF (ARCA:URA) was once a pure-play uranium ETF it underwent a change in the index it tracks in 2018.

While it previously tracked the Solactive Global Uranium Total Return Index, it now tracks the Solactive Global Uranium & Nuclear Components Total Return Index.

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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Energy Fuels is a client of the Investing News Network. This article is not paid-for content.