5 Best Mining ETFs

1. Sprott Uranium Miners ETF (NYSE:URNM)

5-Year Performance as of September 9: 210.62%

The Sprott Uranium Miners ETF (NYSE:URNM) ranks 1st on our list of the best performing mining ETFs. It  seeks to invest a minimum of 80% of its total assets in securities of the North Shore Global Uranium Mining Index. This index is designed to closely track the performance of companies that allocate at least 50% of their assets to the uranium mining industry. This includes a variety of activities such as mining, exploration, development, and production of uranium, as well as holding physical uranium, owning uranium royalties, or engaging in other supportive activities for the uranium mining sector. The fund was launched on December 3, 2019. As of September 8, 2023, the fund’s net assets amount to $1.12 billion, and it offers an expense ratio of 0.83%. The fund has a portfolio comprising 37 stocks.

Cameco Corporation (NYSE:CCJ) is the largest holding of the Sprott Uranium Miners ETF (NYSE:URNM). Cameco Corporation (NYSE:CCJ) supplies uranium for electricity generation. The company operates in two segments – Uranium and Fuel Services. It sells uranium and fuel services to nuclear utilities across the Americas, Europe, and Asia.

According to Insider Monkey’s second quarter database, 54 hedge funds were bullish on Cameco Corporation (NYSE:CCJ). Comparatively, 49 hedge funds had invested in the stock in the preceding quarter. Richard Driehaus’ Driehaus Capital held the largest position in the company, consisting of 4.17 million shares valued at $130.8 million.

Aristotle Global Equity Strategy made the following comment about Cameco Corporation (NYSE:CCJ) in its Q4 2022 investor letter:

“Cameco Corporation (NYSE:CCJ), the world’s largest publicly traded uranium producer, was the largest detractor for the quarter. The company announced a strategic partnership with Brookfield Renewable to acquire Westinghouse Electric Company, one of the world’s largest nuclear services businesses, for a total enterprise value of $7.87 billion. Cameco’s 49% interest in Westinghouse will be funded with cash, equity issuance and debt. While the announcement and resulting equity issuance came as a surprise, our initial impression is positive. Industry consolidation and management’s prior prudence (i.e., net cash balance sheet and shutting production in tough times), we believe, uniquely positioned Cameco to pursue this strategic transaction. We recognize the deal increases Cameco’s financial leverage; however, we believe Westinghouse’s market-leading downstream capabilities will align well with Cameco’s production and fuel services to offer a highly competitive nuclear fuel solution. In addition to the acquisition, the company announced the production of the first packaged pounds of uranium since restarting McArthur River mine and Key Lake mill. Moreover, Cameco signed a uranium supply agreement with China Nuclear International Corporation, a subsidiary of one of the country’s largest nuclear power operators, China National Nuclear Corporation. We believe these events highlight Cameco’s continued market leadership and opportunistic mindset in a fast-changing energy landscape.”

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