5 Best Natural Resources ETFs

2. Global X Uranium ETF (NYSE:URA)

5-Year Performance as of October 9: 101.17%

Introduced in November 2010, the Global X Uranium ETF (NYSE:URA) aims to mimic the performance of the Solactive Global Uranium & Nuclear Components Total Return Index. The ETF provides exposure to companies engaged in uranium mining and the production of nuclear components. As of October 9, the ETF held total assets worth $2.03 billion, while featuring an expense ratio of 0.69%.

Cameco Corporation (NYSE:CCJ) is the biggest holding of Global X Uranium ETF (NYSE:URA). Cameco Corporation (NYSE:CCJ) is involved in the exploration, mining, and commercialization of uranium for the generation of electricity within two segments – Uranium and Fuel Services. According to Insider Monkey’s second quarter database, 54 hedge funds were bullish on Cameco Corporation (NYSE:CCJ), as opposed to 49 hedge funds in the preceding quarter. 

Aristotle Capital’s International Equity strategy said this about Cameco Corporation (NYSE:CCJ) in its second quarter 2023 investor letter:

“Cameco Corporation (NYSE:CCJ), the world’s largest publicly traded uranium producer, was the top contributor during the period. Over the past year, there has been a rise in support from governments and policymakers for nuclear energy as countries realize it can play a crucial role in lowering dependence on fossil fuels to meet environmental pledges and goals. In addition, Russia’s war in Ukraine had led to an increase in the price of competing carbon fuels and heightened attention on energy security. Although such global market dynamics have likely favored Cameco in the short term, we believe the company will benefit long term from its financial discipline and advantaged assets. (Its Canadian mines—Cigar Lake and McArthur River/Key Lake— produce some of the world’s highest‐grade uranium.) Cameco has also slowly ramped up production while obtaining long‐term contracts.”