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Cameco Corporation (CCJ)
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Global X Uranium Index ETF (HURA)
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Sprott Physical Uranium Trust (U.UN)
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Global X Uranium ETF (URA)
Q: I'm trying to understand why HURA has outperformed URA by almost 20% this year. Holdings like Cameco and the Sprott Physical Uranium Trust Fund that have moved alot seem to have relatively similar weightings in both funds. NAK Kazatomprom AO - GDR hasn't had as strong returns YTD and is actually overweighted in HURA vs. URA. I don't think the USD-CAD has had any major impacts on the returns this year. What am I missing?
Also I think Cameco has had exceptional returns in 2023 far outpacing the ETF, do you think the others will catch up over time?
Also I think Cameco has had exceptional returns in 2023 far outpacing the ETF, do you think the others will catch up over time?
5i Research Answer:
URA has increased ~42% year-to-date, largely led by CCJ (24% weight), U.UN (11% weight), NXE (7% weight), and KAP (6% weight). HURA has a much higher weighting to U.UN (16% weight), which has increased 63% year-to-date. We would attribute much of this outperformance due to its higher U.UN weight.
All of the uranium names trade very similarly over a long period of time, and we expect to see some of the smaller names demonstrate outperformance in a risk-on environment, and as the price of uranium rises.