HANetf Head of Research, Tom Bailey, recently presented at the Investment Week Funds to Watch event on 27th-28th February. During his presentation, he explored the investment case for nuclear energy and highlighted how the Sprott Uranium Miners ETF provides investors with targeted exposure to this rapidly evolving sector.
As the world ramps up its pursuit of energy security and cleaner power solutions, nuclear energy is undergoing a strong resurgence, driving increased demand for uranium. Meanwhile, copper remains essential for the electrification of economies, renewable energy expansion, and the growing power needs of AI.
Key discussion points:
- Why the nuclear energy renaissance is accelerating – and how uranium demand is set to surge
- Copper's critical role in powering electrification, AI, and green infrastructure projects
- Ongoing supply constraints for uranium and copper – can the market keep up?
- Physical uranium exposure vs mining ETFs – what investors need to consider
Why is the fund a ‘fund to watch' and how could it work in an investor's portfolio?
Nuclear energy is emerging as a key part of the global clean energy transition. With governments worldwide committing to net-zero targets, nuclear power's reliability, efficiency, and low-carbon profile make it an essential complement to intermittent renewables. Nuclear power is also attractive due to fuels costs being a minimal part of power plant's operating costs, providing protection against price shocks and provide energy security. This fund is positioned to capture the benefits of the nuclear renaissance by providing targeted exposure to uranium mining and related activities. Such exposure not only diversifies an investment portfolio but also offers the potential to benefit from the long-term growth in nuclear capacity and the constrained supply of uranium.
What are the big opportunities and risks for the strategy?
The key opportunity lies in the strong, structural demand for nuclear energy as global electricity needs increase and policies continue to support low-carbon power sources. This will increase demand for uranium, a market which is already facing supply constraints. To meet current and future uranium demand, prices will have to increase to incentivise greater production. However, the strategy must also navigate certain risks, including market volatility, regulatory uncertainties, and geopolitical disruptions that can affect uranium supply chains. Despite these challenges, the long-term fundamentals of nuclear energy support a compelling investment thesis.
Can you provide an overview of the ETF's construction and the types of exposure it offers?
The ETF is constructed to deliver pure-play exposure to uranium and uranium miners, which should be key beneficiaries of the global nuclear energy revival. It invests in a diversified portfolio of global companies that are active in uranium mining—covering exploration, development, and production—as well as in entities that hold physical uranium. This gives investors a mix between mining equities and the spot price of uranium itself.
Sprott Junior Uranium Miners UCITS ETF
Sprott Uranium Miners UCITS ETF
Sprott Copper Miners ESG-Screened UCITS ETF
