The Global energy policies are in constant requirement of more energy related products to satisfy their needs and increasing demand. The growth in the industrial sectors and increase in the population has increased the requirements of power consumption. The constant increase in the consumption levels have lead to the urge and demand of Uranium , a substance containing explosive values and amounts of energy , having the capacity to produce the same levels of power as the traditional resources with very small quantities of input. The Solactive Global Uranium Index is designed to reflect the transparency of the performing results of the uranium mining industry and the involvement of the Industry in terms of areas such as mining, refining, exploration, and manufacturing of equipment.
The global economies have understood the importance of this fuel and are building policies to safely process the mineral to extract the power that is generated. This does require a lot of safety and nowhere does it resemble the safety measures used to process and transport the traditional power generating fuels. The recent prospects of Nuclear Power have been imbibed by economies globally for example, India, Japan, United Kingdom and Japan.
Holdings of the uranium ETF, country wise shows Canada as the highest bidder with 57.67% of the total assets followed by Australia with 27.25% and lastly United States with 15.08%. This exhibits that Canada is very actively involved with the mining, processing and extraction of the yellow cake.
Having always received bad press this mineral is always under some scrutiny , whether it is associated with the 2011 disaster in Japan or any other report, the power packed mineral still seems to head strong despite the grave reports, the simple reason being the quench for the rising demand for energy globally. Debuted in November 2010, this ETF belonging to the uranium Industry got derailed in the year 2011 after the brutal shock of the Japanese nuclear facility. The spot prices of this yellow cake change so rapidly that is becomes difficult for the investors to analyze the trends of the uranium industry. The previous year experienced rock bottom prices around $49, which is astonishingly low. But the good behavioral trend in demand for this mineral is that despite all odds the developing nations still plan to build up new nuclear setups to cater to their demands for energy.
The latest gloomy news concerned with the issue is that the Japanese government has declared that more than 2,75,000 tons of radioactive water has been leaked into the Pacific Ocean ever since the nuclear disaster in 2011 and an urgent clean up of the Fukushima Daiichi facility is required. Harsh consequences of nuclear debris are piping up and may lead to variations in the spot prices. Some of the developed nations are already pulling their steps back in expansion of further nuclear projects, but also seen and felt is the apathetic concern of some of the developing nations towards this haphazard and they still seem to keep up the progress of the new projects in pipeline. The reason for their choice is the number of gas emissions that traditional fuels are associated with, which are much larger than the nuclear sector, making the uranium Investment still a desirable product.
Global X Uranium ETF [URA] offers exposure to the best uranium mining companies worldwide in the uranium Industry sector. Uranium ETF provides investments that correspond to the price and yields of the Solactive Global Uranium Index and charges annual fees of 0.69%.