A Concentrated Bet on Nuclear Energy’s Resurgence

VanEck Uranium+Nuclear Energy ETF US92189F6016

The global pivot toward energy security and decarbonization is fueling a powerful narrative for nuclear power. This strategic shift is creating a compelling backdrop for specialized investment vehicles like the Sprott Uranium Miners ETF (URNM), which offers targeted exposure to companies across the uranium and nuclear fuel cycle. The fundamental case is supported by ambitious international goals, including a target to triple worldwide nuclear capacity by 2050.

Current uranium market data reveals a nuanced picture with a decisive long-term bias. While the spot price declined to $75.80 per pound in late November 2025 from $80.00 in October, a more telling indicator is the simultaneous rise in the long-term contract price to $86.00. This divergence underscores sustained confidence in future demand, which is underpinned by a persistent structural supply deficit estimated at 30-40 million pounds annually.

Commercial and geopolitical developments continue to reinforce the sector's momentum. Cameco Corp, a major holding in URNM, saw its shares advance in November following the announcement of a substantial uranium supply contract with India worth nearly $2.8 billion. In parallel, Turkey revealed plans in early December 2025 to develop small modular reactors. Regulatory support is also evident in the United States, where barriers for uranium enrichers have been lowered.

Portfolio Composition: High Concentration, Global Reach

URNM tracks the North Shore Global Uranium Mining Index and holds 38 securities. The fund's strategy is notably concentrated, with its ten largest positions accounting for 78.23% of the portfolio. The top holdings are:
* National Atomic Co Kazatomprom JSC ADR: 16.87%
* Cameco Corp: 16.00%
* Sprott Physical Uranium Trust Units: 11.78%

These three positions alone represent over 44% of the fund's assets, creating a significant dependence on the performance of these key entities and the physical uranium market. Geographically, the allocation is more diversified, with primary exposures to Canada (47.46%), the United Kingdom (20.15%), and Australia (15.15%).

ETF Performance and Key Metrics

As of December 5, 2025, the fund reported assets under management (AUM) of $1.84 billion and carries a total expense ratio of 0.75%. Recent performance figures indicate positive momentum:
* 1 Week: +6.06%
* 1 Month: +4.31%
* Year-to-Date (as of Dec. 5, 2025): +11.25%

The ETF's price closed at $58.08 on December 8. Its net asset value (NAV) stood at $59.12 on December 5, representing a slight discount of -0.81%. With an average daily trading volume of approximately 758,600 shares, the fund provides sufficient liquidity for investors.

For those considering uranium exposure, the competitive landscape includes alternatives like the Global X Uranium ETF (URA) and the Sprott Junior Uranium Miners ETF (URNJ), which offer either broader diversification or a sharper focus on exploration companies. The enduring structural deficits in uranium supply, coupled with global nuclear energy expansion plans, continue to form the fundamental thesis for this niche sector.