VanEck targets energy sector with uranium ETF

ETF provider VanEck has announced its intention to launch its Uranium and Energy Innovation ETF (URAN) as global political agendas point to expansion in this sector.

As global electricity demands accelerate on the back of rapid expansion in AI, computational power, and digital infrastructure, VanEck suggested the ETF will deliver access to growth on the back of increased global demand for alternative energy supplies that support decarbonisation and the transition to clean energy.

URAN, the firm explained, will provide exposure to the largest global companies involved in the uranium mining and nuclear energy sector to investors, which it said are typically under-represented in benchmarks.

Supported by the push toward net-zero emissions, governments around the world have begun to embrace nuclear power as a potential solution creating tailwinds for uranium-powered nuclear energy and “generating significant investment into the sector”.

The US, for example, has accelerated its nuclear policy as 2025 executive orders aim to quadruple its capacity by 2050 and streamline regulatory processes. According to VanEck, China, Japan, Switzerland, India, and Norway have also adopted policies in support of nuclear energy.

“The uranium-powered nuclear energy sector offers investors the opportunity to access the current leaders in uranium mining as well as technological development associated with nuclear energy,” the firm said.

Like any other investment, however, there are associated risks to consider, such as ASX trading time differences, foreign currency, political, regulatory and tax risks, and liquidity.

This announcement follows the launch of VanEck’s 46th ETF on the ASX – the MSCI International Growth ETF (GWTH) – in August to complement the firm’s international quality, value, and small-cap strategies.

Utilising a systematic, rules-based approach, the smart beta ETF targets outperformance opportunities and allows investors to add growth assets to their portfolio, while providing diversification outside of overheld companies.

“Investing in growth stocks has traditionally been the domain of active managers, limiting access by the broader investor population. GWTH democratises this opportunity, with convenient access via ASX at a fraction of the typical active management fee,” the firm said.