Direxion Launches Daily Uranium Industry Bull 2X Shares ETF Tracking the Solactive United States Uranium and Nuclear Energy ETF Select Index
Solactive is pleased to announce the launch of the United States Uranium and Nuclear Energy ETF Select Index for Direxion Daily Uranium Industry Bull 2X Shares ETF. The radioactive metal’s price is up 233%[1] since 2021[2], highlighting the rapid resurgence of nuclear power globally. Uranium is poised to play a pivotal role as the world transitions to cleaner energy sources. Projections indicate that reactor demand could increase from approximately 65,650 metric tonnes in 2023 to nearly 130,000 metric tonnes by 2040[3].
The Solactive United States Uranium and Nuclear Energy ETF Select Index constituents represent US-listed ETF securities from the Nuclear Energy sector and currently includes the following two ETFs in the index: Global X Uranium ETF and Sprott Uranium Miners ETF.
Other securities must be listed on the NASDAQ Stock Exchange, New York Stock Exchange, NYSE American, or NYSE Arca to be eligible for inclusion. They must be of the ETF security type. Additionally, they must be classified under Nuclear Energy according to the FactSet Classification Niche and have a minimum share class market capitalization of at least USD 1,000,000,000 on the respective selection day. These criteria ensure the ETF includes only high-quality, significant players in the Nuclear Energy sector.
The Direxion Daily Uranium Industry Bull 2X Shares ETF is listed on 26th June on NYSE with the ticker code URAA.
Timo Pfeiffer, Chief Markets Officer at Solactive, commented: “With renewed interest in nuclear power’s role in energy transitions, we believe this index can offer an effective way to track sector performance through ETF investments. Its strategy targets a narrow but growing segment through a rules-driven, passive approach.”
“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 Direxion Managing Director, Edward Egilinsky. “As public sentiment and government support shifts in favor of further expansion, URAA offers traders a unique way to make short-term bets on the nuclear energy industry.”
[1] Bloomberg, June 12, 2024, Deadly and Wildly Profitable, Uranium Fever Breaks Out
[2] Uranium – Price – Chart – Historical Data – News (tradingeconomics.com)
[3] Uranium ETF (URA) (globalxetfs.com)