Sprott Uranium Miners ETF

URNM

Market cap $1.74B

Gold prices hit an apex in October before taking a breather as 2025 winds down — a chance for investors to buy the dip. This could be a golden opportunity to get exposure to a pair of ETFs before another rally ensues: the Sprott Physical Gold Trust (PHYS) and the Sprott Gold Miners ETF (SGDM).

Gold isn't the only commodity that might be worth keeping a closer eye on right now. Recent insights from the team at Sprott Asset Management examined why advisors and investors may want to look for opportunities to enhance uranium exposure.

Nuclear energy is an underappreciated solution to solving the problem of AI data center power demand. Uranium supplies are already tight, and energy demand is set to accelerate over the next several years.

The holiday season not only presents an opportunity to spend time with loved ones, it also allows investors to tilt their portfolios towards assets that can capture short-term upside. One of those is gold.

URNM ETF provides exposure to companies engaged in the uranium market, which is undergoing a structural shift. The uranium supply deficit is expected to sharpen, which could provide a multi-decade bull run for uranium prices. My Buy call on the URNM ETF is based on production challenges, underpinned by long-term expansion plans for nuclear power capacity and a solid AI infrastructure push.

In cases where an asset is in the midst a strong rally, investors are typically gripped with the fear that they already missed out on the major move. That doesn't appear to be the case with gold, which should be approached with a strategic allocation strategy in mind as opposed to simply chasing gains.

For those who have been on the fence about the direction uranium is heading, September likely offered more clarity.  Earlier in October, Jacob White, CFA, ETF Product Manager for Sprott Asset Management took a close look at how uranium performed last month.

Nuclear and uranium stocks have surged as power demand grows, boosted by government policies, global electrification, and AI spending. The IAEA projects global nuclear capacity to grow by more than 160% by 2050 as it becomes indispensable to achieving clean energy ambitions. $3 trillion of investment would be needed to solve global power shortages in the next 25 years, according to Bank of America.

Sprott Uranium Miners ETF has surged over 125% since April 2025, driven by strong uranium price momentum and sector tailwinds. URNM offers diversified exposure to leading uranium producers like CCJ and Kazatomprom, plus smaller miners benefiting from explosive rallies. The ETF is liquid, yields 2.13%, and boasts top momentum and liquidity grades, though it faces volatility and expense ratio concerns.

Sprott Uranium Miners ETF has doubled since April 2025, outperforming the S&P 500 amid surging nuclear power demand and the AI-driven electricity boom. URNM is rated Hold, as it trades near key resistance at $60; a consolidation is expected after a 119% rally from April lows. The ETF offers pure-play uranium exposure, strong recent momentum, and high non-US weighting but carries high risk, concentration, and a steep expense ratio.