Uranium ETFs were up on Monday alongside the latest updates on the conflict between the U.S., Israel, and Iran. President Donald Trump announced over the weekend that the U.S. will conduct a blockade of the Strait of Hormuz due to a falling out between the U.S. and Iran after peace negotiations seemed to reach a positive milestone last week.
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The latest news concerning the Strait of Hormuz has brought volatility to the stock market. This is because the Strait of Hormuz is a major shipping route for oil from the Middle East. The oil that travels through this route represents roughly one-fifth of the world’s supply.
With oil supplies constrained due to the conflict, more interest is being placed on alternative energy sources. This is where uranium ETFs come into play, as they hold assets related to nuclear power plants. Nuclear power plants have become a hot topic as more countries seek to switch away from traditional fuel sources. The conflict in the Middle East has highlighted this need to reduce reliance on oil from the region.
Uranium ETFs Rally Today
Here’s how uranium ETFs reacted to today’s geopolitical news.
- Global X Uranium ETF (URA) was up 1.24% today.
- Sprott Junior Uranium Miners ETF (URNJ) rallied 1.23% as of this writing.
- NorthShore Global Uranium Mining ETF (URNM) gained 1.29% on Monday.
- VanEck Uranium + Nuclear Energy ETF (NLR) climbed 0.86% this afternoon.
Which Uranium ETF Is the Best Bet?
Turning to the TipRanks ETF comparison tool, traders can gain additional insight into these uranium ETFs. Global X Uranium ETF stands out among them with its AUM of $6.97 billion, expense ratio of 0.69%, and dividend yield of 4.09%. It has also experienced the greatest year-over-year gain at 123.12%.
