URNM ETF provides exposure to companies engaged in the uranium market, which is undergoing a structural shift. The uranium supply deficit is expected to sharpen, which could provide a multi-decade bull run for uranium prices. My Buy call on the URNM ETF is based on production challenges, underpinned by long-term expansion plans for nuclear power capacity and a solid AI infrastructure push.
Sprott Uranium Miners ETF has doubled since April 2025, outperforming the S&P 500 amid surging nuclear power demand and the AI-driven electricity boom. URNM is rated Hold, as it trades near key resistance at $60; a consolidation is expected after a 119% rally from April lows. The ETF offers pure-play uranium exposure, strong recent momentum, and high non-US weighting but carries high risk, concentration, and a steep expense ratio.
On Monday, July 21, the uranium market experienced a notable event. Traders acquired over 25,000 call options on the Sprott Uranium Miners ETF NYSEARCA: URNM, driving volume up by 873% compared to its daily average (approximately 3,519 options contracts per day).
| ARCA Exchange | US Country |
The fund outlined operates as an investment vehicle primarily focused on the uranium sector. It pledges to allocate a minimum of 80% of its total assets towards securities that are indexed based on companies engaged in uranium-related activities. This adherence emphasizes the fund's strategic intent to capitalize on the potential growth and return on investments within the uranium mining and associated industries. The underlying index aims to mirror the performance of entities that invest half or more of their resources into uranium mining, exploration, development, production, or in activities that uphold the uranium mining sector, including the possession of physical uranium or holding uranium royalties. Highlighting its targeted investment approach, the fund is classified as non-diversified, which suggests a concentrated investment strategy that could lead to significant exposure to the uranium industry's market dynamics.
The fund's investment portfolio is centered around two main areas within the uranium sector: