Uranium

5 ASX uranium stocks set to join a global ETF

Thu 27 Jan 22, 3:21pm (AEST)
Uranium nuclear

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Key Points

  • The Global X Uranium is one of the most well-known, largest uranium ETFs
  • As part of its rebalance, 8 new stocks, including 5 ASX-listed companies, will be added
  • What does this mean for the new entrants?

5 ASX-listed uranium stocks will be added to one of the largest uranium ETFs in the world, the Global X Uranium ETF.

The ETF has net assets of around US$1.13bn and aims to provide investors with exposure companies engaged in uranium mining and the production of nuclear components.

As part of its ordinary rebalance, the ETF will add these ASX stocks into its portfolio by Monday, 7 February.

All five stocks have a market cap of less than $200m. 

We don’t yet know how much of each stock the ETF is going to buy.

Why does this matter? 

The rebalance announcement was made on 25 January, meaning a the fund will have a 13-day window to accumulate a position in the five ASX-listed companies.

For an ETF to attempt to accumulate a position in a relatively illiquid and small cap stock could theoretically push the share price up.

That said, the broader market has been selling off pretty hard in the past week. The ASX 200 is currently down -2.3% on Thursday, close to a 1-year low.

Nevertheless, its interesting to observe that of the few uranium stocks trading flat or green - are the ones joining the ETF.

2022-01-27 14 49 38-Window

ASX uranium stocks watchlist at 2:50 pm AEDT

Global X's holdings

Looking at some of the ETF's current ASX-listed holdings, the larger ones include:

Although the holdings vary in dollar amount, they both equal roughly 4.8% of the respective company's market cap.

Some of its smaller holdings include: 

Again, these positions are worth roughly 5% of the respective company's market cap.

Written By

Kerry Sun

Finance Writer & Social Media

Kerry holds a Bachelor of Commerce from Monash University and was Vice President of the University Network for Investing and Trading (UNIT). He is an avid swing trader, and drawn to breakouts and technical set ups. Outside of writing and trading, Kerry is a huge UFC fan, loves poker and bouldering.

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