Direxion today launched an ETF that offers leveraged exposure to companies operating in the nuclear energy industry. The Direxion Daily Uranium Industry Bull 2X Shares (NYSE Arca: URAA) aims to provide twice the daily performance of the Solactive United States Uranium and Nuclear Energy ETF Select Index.
The fund has an expense ratio of 1.44%.
“Uranium prices have reached the highest levels in over 15 years, and the uranium market is seeing incredible growth. But there’s a significant gap between supply and demand that begs further development and investment,” said Edward Egilinsky, Direxion managing director. “As public sentiment and government support shifts in support of further expansion, URAA offers traders a unique way to make short-term bets on the nuclear energy industry.”
Nuclear Energy’s Comeback
Nuclear energy is seeing a bit of a renaissance right now. It fell out of favor for many years in the wake of the Fukushima disaster in Japan in 2011. The expanded usage of artificial intelligence has increased energy demand significantly. Many are coming around to the idea that nuclear energy is an environmentally friendly alternative to conventionally sourced energy. The development has helped to boost the price of uranium to $88.6/lb.
The Trading Economics website notes that 21 countries, including the United States, intend to produce three times the nuclear power they currently generate by 2050. And the World Nuclear Association says there are 60 nuclear reactors currently being built globally, with plans announced for another 110 reactors. Currently, roughly 440 nuclear reactors are in operation globally, the organization finds.
Direxion currently has nearly $42 billion in assets spread across 87 ETFs. Its largest fund is the $10.3 billion Direxion Daily Semiconductor Bull 3x Shares (SOXL).
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