OKLO - URA: Unique Risks Manifested, Moving To NUKZ (Downgrade)
2025-04-02 04:57:42 ET
Summary
- Despite URA's 30% decline, the nuclear thesis remains intact, but URA's high concentration in Cameco and exposure to volatile commodities are significant risks.
- US energy policy shifts and trade protectionism favor domestic firms, making NUKZ a better option with its focus on US-based companies and diversified holdings.
- NUKZ's inclusion of utilities and lower concentration in single names reduces risks, aligning better with the evolving nuclear energy landscape and geopolitical trends.
- I recommend a hold rating for URA and a buy rating for NUKZ, advising investors to consider an allocation to NUKZ instead, as it is better positioned.
Introduction
My regular readers will know that I'm a uranium bull. I've written about Uranium a bunch, including initiating coverage of the Global X Uranium ETF (NYSEARCA: URA ) back in November last year , and appearing on Seeking Alpha's ETF Spotlight to discuss the Range Nuclear Renaissance ETF (NYSEARCA: NUKZ ).
Both funds have suffered alongside the market YTD, and both have proven far more volatile. However, this doesn't mean that the nuclear thesis is dead....
URA: Unique Risks Manifested, Moving To NUKZ (Downgrade)