In the industrialized world, nuclear power is gaining popularity as a carbon-free energy source. Demand for uranium is expected to continue growing over the next decade and beyond as China and India expand their nuclear reactor fleets, while Japan restarts nuclear power plants that have been shut down since the 2011 Fukushima NPP tragedy. On the supply side, however, the uranium mining industry has been hit by underinvestment for nearly a decade, leading to declining reserves and capacity.

Apart from the better known Global X Uranium ETF (URA), there are some other uranium-focused ETFs such as:

● Invesco Solar ETF (TAN): This fund provides targeted exposure to solar power energy, with 35 individual components and four names accounting for more than a third of the assets.

● iShares Global Clean Energy ETF (ICLN): ICLN invests in domestic and international companies engaged in renewable energy, including wind and solar.

● Invesco WilderHill Clean Energy ETF (PBW): Similar ICLN, PBW holds companies focused on green and renewable energy or facilitates their development and production.

There is one less talked-about, but more economically efficient exchanged traded fund called Sprott Uranium Miners ETF (URNM).

Key Facts About URNM:

Net assets: $863 million

12-month trailing yield: 7.86%

Inception: December 3, 2019

Expense ratio: 0.85%

Number of holdings: 39

The fund invests at least 80% into assets tied to the North Shore Global Uranium Mining Index (URNMX) tracking companies involved by at least 50% in the uranium mining industry, including mining, exploration, development, or production.

However, it also includes companies that hold physical uranium, own so-called uranium royalties or are engaged in auxiliary activities supporting the uranium mining industry.

Since the ETF started in late 2019, it’s held up reasonably well. It’s pulled in an average annual return of 35.28% since inception.