Defiance has launched the first ETF to deliver amplified exposure to uranium miners and stocks from other nuclear-related industries.
URAX is the first ETF to deliver leveraged exposure to uranium miners and other nuclear-related stocks.
The Defiance Daily Target 2X Long Uranium ETF (URAX US) has been listed on NYSE with an expense ratio of 0.95%.
Positioned to take advantage of a global shift towards nuclear power as a clean and efficient energy source, URAX offers leveraged exposure to the increasing demand for uranium. As nuclear power generation expands worldwide and its role in combating climate change is recognized, URAX is set to capitalize on this growing market.
Sylvia Jablonski, CEO at Defiance ETFs, commented: “We are thrilled to introduce URAX, the first leveraged ETF in uranium. This ETF reflects our commitment to providing investors with innovative opportunities to capitalize on emerging trends and disruptive technologies. With URAX, traders can now leverage the potential of nuclear energy.”
Investment approach
URAX seeks to deliver twice (+200%) the daily return of the Global X Uranium ETF (URA US) which is linked to the Solactive Global Uranium & Nuclear Components Total Return Index.
The index targets a broad range of companies involved in uranium mining and the production of nuclear components, including those in extraction, refining, exploration, or manufacturing of equipment for the uranium and nuclear industries.
Stocks in the index are screened for liquidity and weighted according to free-float market capitalization.
A specific capping methodology is used at the time of the semi-annual index review to enhance diversification. The maximum weight of a ‘pure play’ company is 20%, with ‘non-pure play’ company weightings capped at 4.5%. Further, the sum of weights of all components that have a market capitalization smaller than $100 million must not exceed 5%.
Investors should note that inverse and leveraged ETFs are only suitable for sophisticated traders who understand the risks involved. Specifically, these products tend to decay in value if held for an extended period, potentially leading to significant losses, especially in volatile but range-bound markets.