Investors on Reddit’s WallStreetBets forum are said to have a hand in pushing up the ETF.

Uranium, the raw material for nuclear power plants, is within the cross-hairs of the famous WallStreetBets forum on Reddit – which incited the meme-stock speculative frenzy in GameStop (NYSE: GME) earlier this year. The Redditors are said to have pushed up the Global X Uranium ETF (NYSEARCA: URA) to a 52-week high. (Entrepreneur.com)

Uranium – on the up-and-up

With the ongoing concerns surrounding climate change and global warming, uranium’s virtues as a clean source for nuclear energy are suddenly front-and-center.

Countries such as China and India have enormous demand for power that must be satisfied without emissions. Nuclear energy is a viable source, and uranium is therefore in high demand.

Another reason touted for the strident rise in the metal (and URA) is buying by Sprott Physical Uranium Trust, a Canadian Closed End Fund.

Furthermore, a number of nuclear reactors in Japan that were shutdown following the 2011 Fukushima disaster, are expected to return to service in the event Fumio Kishida becomes the country’s next prime minister.

Globally, rising demand for uranium would be met with declining supply because of the lack of investment in new mines.

Moreover, the radioactive metal is far more efficient compared to renewables such as solar or wind, and does not suffer from intermittency.

Its prices are therefore perched at their highest levels since 2014.

Global X Uranium ETF (NYSEARCA: URA)

URA tracks the Solactive Global Uranium & Nuclear Components Index. The fund’s AUM is $887.8 million.

Its expense ratio is 0.69%.

The ETF is likely to benefit from uranium’s rising prices due to its cleaner-energy attributes.

Related Story: Sprott’s To Reorganize UPC Into Physical Uranium Fund

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