Several exchange-traded funds (ETFs) that provide exposure to uranium are experiencing a decline on Tuesday after a military junta overthrew the president of Niger. This development has caused a slight decrease in the gains these ETFs achieved earlier this week.
At last check, the Global X Uranium ETF (URA) was down 0.8% in the afternoon, while the Sprott Uranium Miners ETF (URNM) fell 0.2%, according to FactSet data. However, it’s important to note that both funds have seen significant growth this week. The Global X Uranium ETF has risen by 2.5%, while the Sprott Uranium Miners ETF has climbed by 3.6%.
Niger is a prominent uranium producer and ranks among the largest in the world, according to data from the World Nuclear Association. Uranium plays a vital role in powering commercial nuclear reactors for electricity generation, as well as in the production of isotopes for medical, industrial, and defense purposes, as stated by the U.S. Energy Department.
In late July, members of Niger’s military staged a coup in the country, resulting in the replacement of President Mohamed Bazoum by General Abdourahmane Tchiani, as reported by the Associated Press. The Washington Post also mentioned on Monday that a group of West African nations has threatened military intervention in Niger if ousted President Mohamed Bazoum is not reinstated by August 6.
Top Holdings in Uranium ETFs
Conclusion
The uranium sector has shown robust performance with these leading ETFs, highlighting the presence of major players like Cameco Corp., National Atomic Company Kazatomprom, and Sprott Physical Uranium Trust. Investors in these funds have benefitted from the overall growth witnessed by the uranium industry.
