The North Shore Global Uranium ETF has surpassed $500 million in assets under management (AUM) as of 9/9/21. Launched on 12/4/19, the fund has produced a cumulative return of over 157% (on a price basis) since its inception through 8/31/21.
Performance quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted. Shares are bought and sold at market price and not individually redeemed from the fund. Brokerage commissions will reduce returns. Returns for periods of less than one year are not annualized. For performance current to the most recent month end, visit https://urnmetf.com/urnm. High short-term performance of the fund is unusual, and investors should not expect such performance to be repeated.
“We are thrilled to reach this exciting milestone,” said Tim Rotolo, CEO and Founder of North Shore Indices, who went on to note that “recent price action in the spot uranium market underscores our long-standing thesis that uranium prices had hit a bottom in 2016 and were poised for a substantial, long-term bull market due to a multi-year supply deficit which had formed and is only growing with the renewed interest in nuclear power.”
Since 8/16/21, uranium prices have surged 33% through 9/8/21, hitting a six-year high of $40/lb.1 Realizing its potential value, non-utility purchasers of uranium, most notably the Sprott Uranium Trust, have stepped into the market. Historically, the entrance of financial buyers has presaged substantial bull markets in uranium prices.2
“Despite the recent market move, we still believe that we are in the early stage of a long-term bull market in uranium,” Mr. Rotolo noted. “Based on our internal research, uranium demand exceeds supply, and financial buyers may widen that gap, creating a bullish environment for the metal.”
“We want to congratulate Tim and North Shore on reaching $500 million,” said J. Garrett Steven, CEO of Exchange Traded Concepts and advisor to the fund. “We believe that individuals are only just beginning to realize the value offered by an investment in URNM and look forward to potential future growth for the fund,” Mr. Stevens went on to note.
URNM seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the North Shore Global Uranium Mining Index.
The index is designed to track the performance of companies that are involved in the mining, exploration, development and production of uranium as well as companies that hold physical uranium, uranium royalties or other non-mining assets.
Risk Disclosure and Important Information
Exchange Traded Concepts, LLC serves as the investment advisor. The Fund is distributed by SEI Investments Distribution Co. (1 Freedom Valley Drive, Oaks, PA 19456), which is not affiliated with Exchange Traded Concepts, LLC, North Shore Indices, or any affiliates. Check the background of SIDCO on FINRA’s BrokerCheck.
Carefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund’s full or summary prospectus, which may be obtained by visiting urnmetf.com. Investors should read it carefully before investing or sending money.
Investing involves risk, including possible loss of principal. In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Narrowly focused investments, investments in smaller companies, and those in commodities typically exhibit higher volatility. Issuers in energy-related industries can be significantly affected by fluctuations in energy prices and supply and demand of energy fuels.
Commodity prices may be influenced or characterized by unpredictable factors, including high volatility, changes in supply and demand relationships, weather, agriculture, trade, changes in interest rates and monetary and other governmental policies, action and inaction. Uranium Companies may be significantly subject to the effects of competitive pressures in the uranium business and the price of uranium. The price of uranium may be affected by changes in inflation rates, interest rates, monetary policy, economic conditions and political stability. The price of uranium may fluctuate substantially over short periods of time, therefore the Fund’s share price may be more volatile than other types of investments. In addition, they may also be significantly affected by import controls, worldwide competition, liability for environmental damage, depletion of resources, mandated expenditures for safety and pollution control devices, political and economic conditions in uranium producing and consuming countries, and uranium production levels and costs of production. Demand for nuclear energy may face considerable risk as a result of, among other risks, incidents and accidents, breaches of security, ill-intentioned acts of terrorism, air crashes, natural disasters, equipment malfunctions or mishandling in storage, handling, transportation, treatment or conditioning of substances and nuclear materials.
There is no guarantee the fund will achieve its stated objective. Indices are unmanaged and do not include the effect of fees. One cannot invest directly in an index. The fund is non-diversified.
Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Market price returns are based upon the midpoint of the bid/ask spread at 4:00 PM Eastern time and do not represent the returns you would receive if you traded shares at other times. The first trading date is typically several days after the fund inception date. Therefore, NAV is used to calculate market returns prior to the first trade date because there is no bid/ask spread until the fund starts trading.