The Global X Uranium ETF falls sharply as miner equities diverge from stable uranium prices, driven by utility contracts over spot rates.
The Global X Uranium ETF (URA) has declined nearly 18% over the past month, trading near $39, while spot uranium prices remain steady at $85 per pound. This disconnect reflects a broader selloff in uranium miner equities, despite stable demand for the physical commodity.
Cameco (CCJ), which accounts for roughly 20% of URA’s portfolio, has dropped 19% in the same period, weighing heavily on the ETF’s performance. Long-term utility contracts, which drive 80% of uranium volume, are more critical to miner earnings than spot prices, limiting the impact of short-term commodity stability.
Despite the recent drawdown, URA remains up 144% over five years and 277% over a decade, supported by long-term trends like AI-driven data center demand for nuclear power.