Sprout launches uranium fund in Europe

Toronto-based Sprott Asset Management has launched its European uranium fund in the form of an exchange-traded fund, which will provide exposure to companies involved in the uranium mining industry.

Sprott Uranium Miners UCITS ETF Traded on German Xetra under the acronym U3O8 And in the London Stock Exchange under the index URNM. It comes with a cost rate of 0.85%. The fund is being brought to market in conjunction with the ETF issuer HANetf, which will be responsible for marketing and distribution.

The ETF will reiterate the strategy behind Sprott’s US listing Sprott Uranium Miners ETF (URNM US) which the company recently acquired from indexing the North Shore Index.

After starting 2021 with just $40 million in assets, the recently listed US-listed Sprott Uranium Miners ETF has increased AUM to nearly $1 billion due to a combination of strong inflows and impressive returns – the fund rose 98.0% between January 1, 2021 and April 22 2022.

The strong results of the ETF were driven by the explosion of spot uranium prices as the publicity surrounding the global climate crisis increased the demand for clean, emissions-free energy sources such as nuclear power – uranium is the fuel most used by nuclear power plants because it has the unique property of preserving nuclear fission itself.

The fund’s rise also accelerated in the midst of the ongoing war in Ukraine – the ETF has grown 51.7% since the Russian invasion on February 24 – as the conflict highlighted the importance of reducing Europe’s dependence on Russian oil and natural gas.

systematic or systemic

The ETF tracks the North Shore Sprott Uranium Miners Index, which targets companies around the world specializing in uranium mining, exploration, development and production, as well as corporations and trusts. uraniumor proceeds of uranium or other non-mining assets associated with uranium. Eligible companies must have a market capitalization of more than $40 million.

The components selected are weighted by market value, while the total weight of miners, explorers and developers is set at 82.5% and the total weight of companies owning physical uranium or royalties at 17.5%.

The restriction rules aim to increase diversification by limiting the weight of the largest company to 15%, the total weight of all companies above 5% to 40%, and the weight of all companies outside the top five to 5%.

The index is rebalanced on a semi-annual basis.

At the end of March, Canadian stocks accounted for more than half (58.8%) of the total index weight, Kazakhstan had the second largest exposure to countries (14.4%), Australia (11.7%) and the United States (6.9%). .

Cameco, the world’s largest producer of uranium with 18% of global production, accounted for the largest index with a weight of 18.2%. Other notable positions include JSC National Atomic Kazatomprom (14.4%), Sprott Physical Uranium Trust (10.3%), Energy Fuels (5.4%) and NexGen Energy (5.0%).

The fund is set to be the second ETF in Europe to target the uranium industry. Previously launched in New York Global X Global X UCITS ETF (URNU) which correlates with Solactive Global Uranium & Nuclear Components v2 and comes with a cost ratio of 0.65%.

Trade the U3O8 ETF

Sprott Uranium Miners UCITS ETF (U3O8 ETF) It is a European exchange-traded fund. This fund is traded on many different exchanges, such as Borsa Italiana, Deutsche Boerse Xetra and the London Stock Exchange. For this reason, different acronyms appear on the same ETF.

This means that it is possible to trade units in this ETF through most Swedish banks and online brokers, for example DejeroAnd nordnet And keep it up.

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