Solactive AG is pleased to announce that Global X Japan has selected the Solactive Global Uranium & Nuclear Components Index as the underlying benchmark for its new uranium-focused Global X Uranium ETF listing on the Tokyo Stock Exchange.
Demand for uranium has been steadily increasing due to its crucial role in the nuclear energy sector, which is also widely recognized as a key component for the transition to a carbon-neutral energy future. Meanwhile, the price of uranium has surged by over 60% since the start of the year, reflecting growing demand and constrained supply, therefore benefitting the entire uranium supply chain, particularly mining companies [1]. As a leading nation in nuclear energy generation and technologies, Japan has invested in various uranium projects abroad, and in 2022 Japan was among the nations with the highest uranium consumption at 1,790 tons [2], demonstrating investment interest in this strategic industry.
The Solactive Global Uranium & Nuclear Components Index aims to track the performance of companies operating or expected to operate in the uranium industry. Given the strong fundamentals and projected increase in demand, the index universe includes pure-play companies, non-pure play companies, and a list of nuclear component producers. Pure play companies are generally those with significant business operations in the uranium industry, particularly in uranium mining and exploration for uranium, while non-pure play companies are those conducting business operations related to the uranium industry, such as physical uranium investments and supply of relevant technologies. After applying minimum liquidity criteria and exclusions for controversial weapons involvement, the index follows a weighting scheme that further incorporates trading liquidity, while allowing for pure play companies to represent most of the exposure by capping non-pure play companies and nuclear component producers accordingly.
The Global X Uranium ETF listed on 25 July 2024 on the Tokyo Stock Exchange with securities code 224A.
Timo Pfeiffer, Chief Markets Officer at Solactive, commented: “We are delighted to expand our collaboration with Global X Japan on this innovative approach to the uranium market. The Solactive Global Uranium & Nuclear Components Index offers investors a unique opportunity to tap into the growing nuclear and uranium industry, thus capturing the investment potential for the entire nuclear ecosystem, from mining operations to enabling technologies, reflecting the dynamic and evolving landscape of this strategically important sector.”
[1] Uranium prices hit post-Fukushima high on nuclear power revival
[2] Consumption of uranium worldwide in 2022, by leading country
