Uranium ETF - Global X ETFs - Australia

ATOM


Uranium ETF

Reasons to Consider ATOM

Targeted Exposure

Pureplay access to uranium mining and the production of nuclear components.

Emerging Energy Opportunity

Global initiatives to reduce carbon emissions will see uranium and nuclear adoption rise as a crucial power source to facilitate the clean energy transition.

Competitive Supply Dynamics

The case for uranium today is perhaps the strongest it’s been in a decade driven by increasing global demand and nuclear power capacity.

Product Information As of 23 May 2024

Inception Date 7 Dec 2022
Management Costs (% p.a.) 0.69
Currency Hedged No
Domicile Australia
Legal Form Managed Investment Scheme
SMSF Eligible Yes

NAV Information As of 23 May 2024

NAV/Unit (A$) 16.59880000
Currency (NAV) AUD
Shares Outstanding 1,750,000
AUM (A$) 29,047,972.24
NAV History File View

Product Summary

ATOM offers investors access to 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. 

Product Objective

ATOM seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Uranium & Nuclear Components Total Return Index.

Trading Details

Ticker ATOM
Bloomberg Code ATOM AU Equity
ISIN AU0000249336
Trading Hours 10:00AM – 4:00PM

Management & Administration

Issuer Global X Management (AUS) Limited
Custodian The Hongkong and Shanghai Banking Corporation Limited, Sydney Branch
Registrar Computershare Investor Services Pty Limited
Trustee Global X Management (AUS) Limited

Benchmark Information

Benchmark Solactive Global Uranium & Nuclear Components Total Return Index.
Provider Solactive AG
Ticker SOLURANT Index

Distributions As of 30 Apr 2024

12-Month Yield 0.00%
12-Month Franking Level 0.00%
Distribution Frequency Semi-Annually
Distribution History View

Performance Table As of 23 May 2024

Total Return (Fund) Total Return (Benchmark) Tracking Difference Tracking Error
1 Month 5.86% 5.93% -0.08% 0.07%
3 Months 14.88% 15.02% -0.14% 0.22%
1 Year 61.17% 64.18% -3.01% 3.83%
3 Year p.a. -- -- -- --
5 Year p.a. -- -- -- --
10 Year p.a. -- -- -- --
Since Inception p.a. 41.30% 43.33% -2.03% 3.24%

Top Holdings As of 24 May 2024

Net Assets (%) Name SEDOL Market Price (Local) Shares Held Market Value (A$)
23.49 CAMECO CORP 2166160 71.00 87,176 6,819,674
8.20 SPROTT-PHYS URAN BNZKG52 29.29 73,732 2,379,496
6.03 PALADIN ENERGY 6668468 16.29 107,466 1,750,614
5.45 NEXGEN ENERGY LT B987K72 10.42 137,692 1,580,825
4.34 NAC KAZATOG-REGS BGXQL36 43.40 19,239 1,260,118
4.19 URANIUM ENERGY B0VLLY2 7.04 114,592 1,217,516
3.87 DENISON MINES CO 2003223 3.09 329,724 1,122,578
3.46 YELLOW CAKE PLC BF50RG4 6.67 78,576 1,004,692
2.71 BOSS ENERGY LTD B1XLCQ6 5.41 145,159 785,308
2.59 MITSUBISHI HEAVY 6597067 1,329.50 58,896 752,631
2.36 DOOSAN ENERBILIT 6294670 18,120.00 34,188 686,186
2.31 SAMSUNG C&T CORP BSXN8K7 142,100.00 4,258 670,246
2.18 SIBANYE STILLWAT BL0L913 23.18 333,483 631,895
2.00 ENERGY FUELS INC BFV4XV7 9.11 57,928 581,450
2.00 ITOCHU CORP 6467803 7,262.00 8,325 581,093
1.97 HYUNDAI ENG&CONS 6450988 33,950.00 15,182 570,926
1.88 BHP GROUP LTD 6144690 44.91 12,180 547,003
1.58 KEPCO ENGINEERIN B4LW1M1 71,100.00 5,825 458,742
1.57 DEEP YELLOW LTD 6480275 1.71 267,547 456,168
1.48 SILEX SYSTEMS 6111735 6.41 66,890 428,766
1.44 AECON GROUP INC 2699547 16.82 22,544 417,796
1.43 ENCORE ENERGY CO BN48958 6.38 59,202 416,165
1.40 CGN MINING B755514 2.68 783,432 405,781
1.33 GS ENGINEERING 6537096 15,350.00 22,756 386,912
1.16 CENTRUS ENERGY-A BQXKDH6 45.93 4,867 337,367
1.04 FISSION URANIUM B94QMQ6 1.13 243,253 302,861
0.91 DAEWOO ENG & CON 6344122 3,655.00 64,949 262,951
0.86 LOTUS RESOURCES BK6XLC1 0.47 536,812 249,617
0.83 UR-ENERGY INC B0WW4L2 1.71 93,403 241,048
0.76 BANNERMAN ENERGY B07DXJ1 4.51 49,041 221,177
0.76 NUSCALE POWER CO BNXK803 6.67 21,777 219,219
0.65 ISOENERGY LTD BD5FYX1 4.25 40,482 189,564
0.61 GLOBAL ATOMIC CO BF11BK3 2.39 66,874 176,100
0.47 URANIUM ROYALTY BKMD921 3.62 34,358 137,040
0.29 AMERICAN LITHIUM BF4XHL9 1.00 76,590 84,388
0.29 ALLIGATOR ENERGY B55ZH25 0.06 1,307,702 83,693
0.27 LARAMIDE RES 2507952 0.87 82,211 78,806
0.21 F3 URANIUM CORP BPRSXG8 0.39 146,246 62,037
0.20 BERKELEY ENERGIA BYVQC08 0.24 149,038 57,471
0.19 FORSYS METALS CO 2597801 1.04 48,555 55,639
0.19 ELEVATE URANIUM BM8ZH21 0.56 98,632 54,741
0.18 MEGA URANIUM LTD 2817833 0.40 118,026 51,367
0.17 ANSON RESOURCES BD8PFL3 0.14 352,874 49,402
0.17 PENINSULA ENERGY 6486381 0.11 441,422 48,556
0.12 CANALASKA URANIU BR1YTV3 0.61 51,997 34,947
0.11 GOVIEX URANIUM I BNGCT03 0.12 258,432 32,746
0.10 AURA ENERGY LTD B14Z2S9 0.18 173,485 30,360
0.10 SKYHARBOUR RESOU BDFGHL3 0.43 61,219 28,667
0.00 PENINSULA EN-RTS BQFPSK7 0.00 107,339
Holdings are subject to change.

Sector Breakdown As of 24 May 2024

Sector Weight (%)
Energy 64.4
Industrials 22.2
None 8.2
Materials 5.1
Other/Cash 0.1

Country Breakdown As of 24 May 2024

Country Weight (%)
Canada 48.1
Australia 16.2
South Korea 10.5
United States 8.9
Japan 4.6
Kazakhstan 4.3
Britain 3.7
South Africa 2.2
Hong Kong 1.4
Other/Cash 0.1

Research

FAQs

  • What companies are included in the index?

    The index tracks companies that have, or are expected to have, business operations or exposure to the uranium industry. These companies are defined by index provider Solactive based on research by Ux Consulting Company (UxC), a nuclear energy consultancy.

    Each company is classified as follows, according to the extent to which it generates revenues from operations in the uranium industry:
    •Pureplay: a company for which a significant part of the business operations is or is expected to be related to the uranium industry (in particular uranium mining, exploration for uranium, and technologies related to the uranium industry).
    •Non-pureplay: has business operations that are related to the uranium industry, and in which it generates large revenues.

    Nuclear component producer companies will be included in the list of index constituents.
  • How are companies in the index weighted?

    Companies are weighted according to the lesser of their free float market capitalisation and the average daily trading value multiplied by 2,000:
    •Non-pureplay and nuclear component producer companies will be capped at 2%.
    •The maximum weight of a pureplay company is 22.50%.
    •The aggregate weight of all pureplay companies with a weight larger than or equal to 5% will be capped at 47.50% whereas the remaining pureplay companies will be capped at 4.75%.
    •The aggregate weight of the index constituents structured as Investments trusts, which provide exposure to physical uranium, is capped at 10%.
    •The aggregate number of non-pureplay companies and nuclear component producer companies will be capped at 15.
  • How does ATOM invest in uranium companies?

    ATOM is built as a feeder fund that invests directly in the NYSE Arca-listed Global X Uranium ETF (URA), which is managed by the Global X team in New York. Listed in 2010, URA is the largest uranium ETF in the world with more than US$1.6 billion in assets under management as of December 2022.
  • What determines the uranium price?

    The price of uranium, like other commodities, is driven by fundamentals and speculative activity. The majority of uranium demand comes from nuclear power plants, where it is used to create low carbon electricity. Meaning the growth of nuclear power worldwide is a key driver of the uranium price.

    Uranium supply depends heavily on Kazakhstan, which provides more than 40% of annual mined supply (mostly via a single listed company, Kazatomprom). This means Kazakhstani geopolitics can impact prices.

    Speculators are also having an increasing influence on uranium prices. A key example is physical uranium trusts, which hold yellowcake on trust for investors. Their purchases have been known to affect prices.
  • What are the potential rewards and risks of investing in uranium?

    While unused in Australia, nuclear energy is a major power source worldwide, producing 10% of global electricity. According to the International Energy Agency, nuclear and hydro power together provide three quarters of non-fossil fuel power worldwide. The IEA credits nuclear power with reducing global carbon dioxide emissions by over 60 gigatonnes the past 50 years – which equates to two years’ worth of global emissions. This makes nuclear power a crucial alternative to fossil fuels and a potential beneficiary of government policies and legislation supporting the energy transition.

    A single uranium pellet, slightly larger than a pea, contains the energy equivalent of a ton of coal, three barrels of oil, or 17,000 cubic feet of natural gas. This means that nuclear power ranks among the cheapest sources of electricity in some countries, based on dollars spent per megawatt-hour of energy generated, due to the efficiency with which it scales. As such, uranium can benefit from increased energy demand.

    Risks of investing in uranium companies include legislative and political risk – as many nuclear reactors are run by state-owned utilities companies. Nuclear accidents – such as Fukushima in 2011 – which cause global uranium prices to fall, are also a risk.

    Risks are not limited to these.

    https://www.iea.org/reports/nuclear-power-in-a-clean-energy-system
    https://www.iea.org/data-and-statistics/data-tools/levelised-cost-of-electricity-calculator
  • Where can ATOM fit in a portfolio?

    Investors can use ATOM in two main ways. First, it can be used as a portfolio satellite for those wishing to invest in the energy transition and the related growth of the uranium market.

    Second it can be used as a way to tactically trade uranium, which has few tradable proxies. Uranium pureplay business, which have pride of place in ATOM, correlate to varying degrees with the spot price of uranium.

Global X Management (AUS) Limited (“Global X”) (Australian Financial Services Licence Number 466778, ACN 150 433 828) is the product issuer. Offers of interests in any retail product will only be made in, or accompanied by, a Product Disclosure Statement (PDS). In respect of each retail product, Global X has prepared a target market determination (TMD). Each PDS and TMD is available at www.globalxetfs.com.au. The information on this website is general in nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information, you should consider the appropriateness of the information having regard to your objectives, financial situation or needs and consider seeking independent financial, legal, tax and other relevant advice having regard to your particular circumstances. Any investment decision should only be made after obtaining and considering the relevant PDS and TMD. Investments in any product issued by Global X are subject to investment risk, including possible delays in repayment and loss of income and principal invested. The value or return of an investment will fluctuate and an investor may lose some or all of their investment. Past performance is not a reliable indicator of future performance.

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