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General Market Commentary
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General Energy
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General Market Commentary
Horizons Introduces Canada’s First Uranium ETF
Investors looking for another way to get involved in the uranium sector can rejoice — on Thursday (May 16), Horizons ETFs Management, a leader in the exchange-traded fund (ETF) sector, launched Canada’s very first uranium ETF.
The Horizons Global Uranium Index ETF began trading Thursday morning on the Toronto Stock Exchange under the ticker symbol HURA. Units started at C$10.14.
Designed to give investors direct exposure to the C$15 billion global uranium sector, HURA is capitalizing on the expanding nuclear energy sector and its need for long-term stable supplies of U3O8.
“There is a realization at the highest levels that wind and solar energy alone will not be able to ensure global carbon emission targets are met,” said Nick Piquard, portfolio manager and options strategist at Horizons ETFs, in a press release.
“Today, nuclear is the only viable solution to supply zero emission-base-load-power, and currently, there is not enough uranium being mined to meet planned growth. These factors combined make for a very positive opportunity for the uranium mining sector.”
While some may wonder why the latest uranium-focused ETF has been launched in Canada, Horizons ETFs cites country’s ranking as second largest uranium producer as part of the motivation.
Saskatchewan’s Athabasca Basin hosts a number of high-profile uranium companies, including Cameco (TSX:CCO,NYSE:CCJ), the global leader. The area also ranks highly on the Fraser Institute’s list of hospitable and favorable mining jurisdictions.
The region of Saskatchewan has seen increased uranium exploration in recent years and is considered to have some of the highest-grade uranium deposits in the world.
According to Horizons ETFs, the introduction of HURA aims to replicate the performance of the Solactive Global Uranium Pure-Play Index.
The ETF will provide access to issuers that are chiefly involved in uranium exploration and mining, as well as those that invest in and participate directly in the physical price of uranium. Lastly, it will track stocks that are available on global stock exchanges in developed markets.
“Global mining ventures can carry significant investment risks. By investing through a diversified ETF like HURA, you can potentially achieve greater stability and risk-mitigation to your uranium-sector exposure,” added Piquard.