Investing in Uranium

Nuclear Energy Infrastructure Suppliers: In order for nuclear power plants to generate electricity, they need reactors, nuclear fuel and support services. Given the sensitive nature of nuclear energy, the barriers of entry into this industry are formidable. Governments must first approve who can enter this industry, substantial expertise in this field is needed and billions of dollars in investments are required. The suppliers of nuclear energy infrastructure face little new competition.

Utilities Exchange Traded Funds (ETFs): For investors looking for diversification and exposure to the nuclear industry, utility exchange traded funds could be a viable investment option. These utility ETFs track the price of a basket of utility stocks. Some of these utility companies in the index have nuclear power plants. For the investor seeking income, these stocks do pay dividends. The management fees on ETFs are competitive, with most charging annual fees of no more than 0.50%.

Utilities Mutual Funds: Utilities mutual funds focus on investing in the utilities sector. Some of the utility companies include those with nuclear power generating plants. The managers running these funds are active investors who attempt to outperform the respective index. Most mutual funds hold at least fifteen companies, providing diversification for the investor. To judge the suitability of a utility mutual fund, the investor should review the fund manager’s investment style, the long-term performance of the fund and the annual fees charged.