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Investing in uranium stocks

It’s a low-carbon alternative to fossil fuel but can be highly dangerous.

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Uranium Stocks & ETFs Jump to List

This commodity is best known for its use in nuclear energy production but has a destructive history. Investors should explore how this material is mined and used before they invest.

What is uranium?

Uranium is a radioactive heavy metal used to fuel nuclear reactors and craft nuclear weapons. It’s mined in a number of countries, but a majority of the world’s uranium supply comes from Canada, Kazakhstan and Australia. Kazakhstan commands the market and was responsible for a whopping 43% of the world’s uranium supply in 2019.

Uranium stocks are stocks from companies involved in the mining, refining and distribution of global uranium.

Investing in mining stocks

Why invest in uranium stocks?

As oil production and consumption continue to trend downward, the world has begun to look to alternative energy sources — and nuclear energy is a big contender.

The World Nuclear Association reports that 30 countries worldwide are working to build nuclear power programs, including China, India, Israel, Norway, Saudi Arabia and Uganda, to name a few.

Uranium fuels nuclear energy. And nuclear energy presents a low-carbon alternative to fossil fuel. The International Energy Agency states that the world must double its nuclear power capacity by 2050 to meet climate change emission-cutting targets.

Uranium is poised to play a big role in the future of global energy production. Investors who buy now could have a viable buy-and-hold investment on their hands as nuclear energy ramps up around the world.

Risks of investing in uranium

Some global attitudes towards uranium have begun to pivot, but not everyone is ready to put uranium’s destructive past behind them.

The devastation of uranium-packed nuclear bombs on Hiroshima and Nagasaki coupled with the terrifying fallout of Chernobyl stand as proof of uranium’s dangers. And after the Fukushima power plant meltdown in 2011, Japan shuttered the doors on most of its nationwide nuclear plants. A country that planned to increase its nuclear power generation to 40% by 2017 now draws less than 2% of its energy from nuclear power.

And Japan isn’t alone. Germany dropped its nuclear energy consumption from 25% in 2011 to 12% in 2019. Other countries have discontinued or banned nuclear energy entirely, like Australia, Italy and Lithuania.

The future of uranium is uncertain. As demand for this type of energy increases in some countries, others are actively reducing or eliminating their consumption.

Uranium is a divisive material and investment. Investors interested in this commodity should familiarize themselves with the potential dangers before buying in.

Uranium stocks

Uranium is a global resource mined and produced by numerous international companies. For well-rounded uranium portfolio exposure, prepare to invest in both US and international stocks.

Canadian uranium stocks

  • Fission Uranium Corp. (TSX: FCU)
  • Uranium Royalty Corp. (TSXV: URC)
  • Cameco Corporation (TSX: CCO)
  • Forsys Metals Corp. (TSX: FSY)
  • Virginia Energy Resources Inc. (TSXV: VUI)
  • Global Atomic Corporation (TSX: GLO)

International uranium stocks

  • Areva SA (OTC Markets: ARVCF)
  • Aura Energy Limited (LSE: AURA.L)
  • Berkeley Energia Limited (ASX: BKY.AX, OTC Markets: BKLRF)
  • Uranium Energy Corp. (NYSE: UEC)
  • Joint Stock Company National AT (IOB: KAP.IL)
  • Paladin Energy Limited (ASX: PDN.AX, OTC Markets: PALAF)

What ETFs track the uranium category?

Only a few ETFs are dedicated to tracking uranium stocks.

  • Horizons Global Uranium Index ETF (TSX: HURA)
  • VanEck Vectors Uranium+Nuclear Energy ETF (NYSEArca: NLR)
  • Global X Uranium ETF (NYSEArca: URA)
  • North Shore Global Uranium Mining ETF (NYSEArca: URNM)

A beginner’s guide to exchange trade funds (ETFs)

Compare trading platforms

To invest in uranium stocks, you need a brokerage account. Review your options.

Name Product Available Asset Types Stock Fee Option Fee Account Fee ETF Transaction Cost Feature Table description
Wealthsimple Trade
Stocks, ETFs
Get a $50 bonus when you open a Wealthsimple Trade account and deposit and trade at least $100.
Pay no commissions when you trade Canadian stocks and ETFs with Wealthsimple Trade.
Scotia iTRADE
Bonds, Options, Mutual Funds, ETFs, GICs, International Equities
$9.99 + $1.25 contract ($4.99 + $1.25 contract if completed 150 trades or more a quarter)
$9.99 ($4.99 if completed 150 trades or more a quarter)
Pay no annual account fees.
Buy, sell and trade ETFs, Equities, Options and more with competitive commissions.
CIBC Investor's Edge
Stocks, Bonds, Options, Mutual Funds, ETFs
$4.95 - $6.95
$4.95 - $6.95 (+$1.25 per contract)
$0 if conditions met, otherwise $100/year
$4.95 - $6.95 is applicable for online stock, ETF and option trades only. Pay $4.95 when you qualify as an Active Trader (trade 150+ times per quarter).
An intuitive and easy-to-use platform with access to a variety of tools that help you make smart decisions and trade with confidence.
Interactive Brokers
Stocks, Bonds, Options, ETFs, Currencies, Futures
Min. $1.00, Max. 0.5% of trade value
$1.50 min. per order
Min. $1.00, Max. 0.5% of trade value
Extensive trading capabilities and global investment tracking.
Access market data 24 hours a day, six days a week and invest in global stocks, options, futures, currencies, bonds and funds from one single account.
Stocks, Bonds, Options, Mutual Funds, ETFs, GICs, International Equities, Precious Metals
$9.95 + $1 per contract
Get $50 in free trades when you fund your account with a minimum of $1,000.
Opt for self-directed investing and save on fees or get a pre-built portfolio and take some of the guesswork out.
Qtrade Direct Investing
Stocks, Bonds, Options, Mutual Funds, ETFs, GICs
$6.95 - $8.75
$6.95 - $8.75 + $1.25 per contract
$0 if conditions met, otherwise $25/quarter
$0 - $8.75
Get up to 50 free trades. Be one of the first 100 new Qtrade clients to use the promo code 50FREETRADES and deposit a minimum of $10,000 (or top up to $15,000 to get $150 transfer fees waived). Valid until September 30, 2021.
Qtrade Direct Investing offers low trading commissions and an easy-to-use platform with access to powerful tools and a wide selection of investment options. Trade 100 ETFs free of charge and thousands more for $8.75 or lower.

Compare up to 4 providers

Bottom line

Whether this commodity belongs in your portfolio depends on how you see the nuclear sector growing in the coming years. Review your brokerage account options across multiple platforms to find the account that best meets your needs.

Frequently asked questions

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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