North Shore Global Uranium Mining ETF Marks Its First Year Anniversary
Fund grows to $20 million in assets under management in its first year
NEW YORK, Dec. 4, 2020 /PRNewswire/ -- The North Shore Global Uranium ETF (NYSE:URNM) will be celebrating its one-year anniversary. Launched on 12/4/19, URNM is a targeted play that offers investors efficient access to a global, basket of companies in the uranium industry.
URNM has advanced 18.05% on a price basis since its inception (as of 11/30/20).1 Assets under management in the fund reached nearly $20MM, a 700% increase since its launch.
Performance quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted. Shares are bought and sold at market price and not individually redeemed from the fund. Brokerage commissions will reduce returns. Returns for periods of less than one year are not annualized. For performance current to the most recent month end, visit https://urnmetf.com/urnm.
"Although the spot price of uranium has risen by 14% in the 12/1/19 – 11/30/202 period, we still believe that the underlying supply and demand dynamics are quite positive for uranium and the theme is in its early innings," noted Tim Rotolo, CEO and Founder of North Shore Indices. "The supply of uranium has been slashed by miners just as demand, in the form of new nuclear energy reactors, is accelerating," Mr. Rotolo went on to note.
Based on North Shore's proprietary research, uranium demand currently exceeds supply and is being filled by a drawdown in existing inventories. Prices will need to rise substantially from their current levels to induce uranium miners to reopen closed mines and to develop new mines.3
URNM seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the North Shore Global Uranium Mining Index.
The index is designed to track the performance of companies that are involved in the mining, exploration, development and production of uranium as well as companies that hold physical uranium, uranium royalties or other non-mining assets.
Originally launched with a tilt toward junior miners, which may have a higher beta4 to an increase in the price of uranium, the index has increased that exposure over the past year as well as removing non-pure play miners. The market capitalization of the industry has grown in 2020 allowing for a greater selection of companies which meet the index selection criteria.
"We are proud of our partnership with North Shore and Tim Rotolo over the past year," said, J. Garrett Stevens, CEO of Exchange Traded Concepts and advisor to the fund. "URNM fits in well with our focus on providing investors with access to products that give them exposure to non-traditional sources of alpha5 that are not readily available in other investment products," added Mr. Stevens.
1 Yahoo Finance
2 Source: Cameco website, https://www.cameco.com/invest/markets/uranium-price
3 Our team performed a comprehensive analysis on the supply and demand of uranium across the globe. Based on our estimates, uranium supply totals 170MM lbs. However, demand seems to be closer to 200MM lbs. Our estimate was based on an analysis of all current and prospective uranium mines, as well as all operating, under construction, and proposed nuclear reactors in the world. We believe current production is not enough to supply existing demand, let alone the potential future growth. The supply deficit has been filled by a reduction in inventories.
4 Beta is a measure of how an individual asset moves, on average, when its benchmark increases or decreases.
5 Alpha is a measure of the return of an investment above its benchmark return.
Risk Disclosure and Important Information
Exchange Traded Concepts, LLC serves as the investment advisor. The Fund is distributed by SEI Investments Distribution Co. (1 Freedom Valley Drive, Oaks, PA 19456), which is not affiliated with Exchange Traded Concepts, LLC, North Shore Indices, or any affiliates. Check the background of SIDCO on FINRA's BrokerCheck.
Carefully consider the Fund's investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund's full or summary prospectus, which may be obtained by visiting urnmetf.com.
Investors should read it carefully before investing or sending money. Investing involves risk, including possible loss of principal. In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Narrowly focused investments, investments in smaller companies, and those in commodities typically exhibit higher volatility. Issuers in energy-related industries can be significantly affected by fluctuations in energy prices and supply and demand of energy fuels.
Commodity prices may be influenced or characterized by unpredictable factors, including high volatility, changes in supply and demand relationships, weather, agriculture, trade, changes in interest rates and monetary and other governmental policies, action and inaction. Uranium Companies may be significantly subject to the effects of competitive pressures in the uranium business and the price of uranium. The price of uranium may be affected by changes in inflation rates, interest rates, monetary policy, economic conditions and political stability. The price of uranium may fluctuate substantially over short periods of time; therefore the Fund's share price may be more volatile than other types of investments. In addition, they may also be significantly affected by import controls, worldwide competition, liability for environmental damage, depletion of resources, mandated expenditures for safety and pollution control devices, political and economic conditions in uranium producing and consuming countries, and uranium production levels and costs of production. Demand for nuclear energy may face considerable risk as a result of, among other risks, incidents and accidents, breaches of security, ill-intentioned acts of terrorism, air crashes, natural disasters, equipment malfunctions or mishandling in storage, handling, transportation, treatment or conditioning of substances and nuclear materials.
There is no guarantee the fund will achieve its stated objective. Indices are unmanaged and do not include the effect of fees. One cannot invest directly in an index. The fund is non-diversified.
Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Market price returns are based upon the midpoint of the bid/ask spread at 4:00 PM Eastern time and do not represent the returns you would receive if you traded shares at other times. The first trading date is typically several days after the fund inception date. Therefore, NAV is used to calculate market returns prior to the first trade date because there is no bid/ask spread until the fund starts trading.
SOURCE North Shore Indices
Share this article