Uranium ETFs Sink on a Nuclear Power Plant Cost Warning

Uranium exchange-traded funds (ETFs) are falling hard on Thursday alongside news of development issues for nuclear power plants. The latest news, reported by The Wall Street Journal, comes from the UK, which has faced significant delays to the development of its Hinkley Point C 3.2 gigawatt, two-reactor power plant.

This nuclear power plant was initially approved in 2016, and a price estimate was set at £18 billion. However, the project has faced several regulatory delays that have shifted the timeline for the reactor to open, as well as the cost of the project. Now builders expect the facility to be ready in 2030, compared to their prior estimate of 2025. The power plant will also have an estimated final price tag of £49 billion.

The setbacks in building this UK power plant are a stark warning for other companies in the nuclear energy sector. Regulators can delay projects for long periods of time and also vastly increase the cost of building them. This could spell trouble for other planned nuclear power plants in the UK.

Uranium ETF Movements Today

Here’s how uranium ETFs moved on Thursday.

• Global X Uranium ETF (URA) was down 3.3% today.
• NorthShore Global Uranium Mining ETF (URNM) fell 4.41% as of this writing.
• Sprott Junior Uranium Miners ETF (URNJ) dropped 4.3% today.
• VanEck Uranium + Nuclear Energy ETF (NLR) slipped 3.3% this afternoon.

Which Uranium ETF Should Traders Invest In?

Turning to the TipRanks ETF stock comparison tool, traders can get all the latest insights on the top uranium ETFs. Looking at the top four on this list, Global X Uranium ETF stands out as a favorite among traders. This is due to its AUM of $7.47 billion, an expense ratio of 0.69%, and a dividend yield of 3.78%. Traders will also note that URA has rallied 114.66% over the past 12 months, despite today’s drop.