Uranium ETFs Dive 30% Even as AI Power Demand Surges

Uranium ETFs have fallen roughly 30% from their highs. The sell-off comes as AI-driven data centers race toward 12% of U.S. electricity demand by 2028, according to Department of Energy projections. The three funds most investors use to play the nuclear theme, Global X Uranium ETF (URA), Sprott Uranium Miners ETF (URNM), and VanEck Uranium and Nuclear ETF (NLR), all felt the pressure. The pain has not been evenly distributed.

URNM's 52-week range runs from $44 to $65, a peak-to-trough drawdown that lines up with the roughly 30% correction narrative. URA sits at $45 after a 9% bounce over the past week. NLR trades near $117. The three funds diverge in construction, and the gap between them is where the investment case lives.

The uranium spot price weakened this year as term contracting slowed and a handful of production restarts came online. That happened while the underlying electricity story continued to accelerate. A single hyperscale facility can pull over a gigawatt of power, equivalent to powering about 750,000 homes. Nuclear generation is the one dispatchable, carbon-free source utilities can point to when a hyperscaler asks for round-the-clock baseload. That structural pull has not disappeared.

Global X Uranium is the largest and most liquid uranium ETF. Its portfolio blends uranium miners with companies further along the fuel cycle and the reactor technology curve. Recent disclosures show Cameco Corp at 22.11%, NexGen Energy at 6.10%, and Uranium Energy Corp at 4.81%. Smaller weights go to reactor developers such as NuScale Power at 3.12% and X-Energy at 3.71%. That mix separates URA from a pure miner basket.

The fund carries an expense ratio of 0.69%, the lowest of the three. Over five years, URA has returned 178%. It is up 17% over the past year, even after the correction. A $2.08-per-share distribution in January 2026, well above the prior January payout, reflected strong underlying cash generation despite equity weakness.

Adding reactor developers and fuel cycle names softens the fund's beta to the uranium price. That is useful in a downdraft. It also mutes the upside when miners rally hard on a spot price move.

Sprott Uranium Miners is the concentrated version of the trade. The top three positions, Cameco at 20.69%, Sprott Physical Uranium Trust at 13.60%, and NexGen at 12.65%, account for nearly half the fund. Physical uranium exposure through the Sprott Trust means URNM tracks miners and holds the metal itself.

That construction is why URNM's drawdown looked steeper. It is down about 10% from early January and slightly negative year-to-date. URA is roughly flat for the year. The other side of that concentration is leverage on the way up. Over the past week, URNM has climbed about 8%. It is still up about 20% over the past 12 months.

The expense ratio of 0.75% is slightly higher than URA's. The relevant question is whether an investor wants the highest beta to the uranium spot price available in ETF form. URNM is that fund. If the thesis is a supply-driven price recovery in the metal, this is the sharpest tool. For a broader thesis, it is the wrong one.

VanEck Uranium and Nuclear ETF blends uranium miners with utilities that actually operate nuclear plants. The top three holdings are Constellation Energy at 9.42%, Cameco at 7.87%, and Public Service Enterprise Group at 7.86%. The top ten represent 62.30% of assets.

Utilities like Constellation and PSEG earn revenue by selling electricity to end customers. When a hyperscaler signs a power purchase agreement with an existing nuclear operator, the operator benefits regardless of where uranium trades on the spot market that week. That decoupling explains why NLR's year-to-date decline of about 6% is milder than the miner drawdowns. Its one-year return of about 2% is more subdued in both directions.

NLR pays more income. The fund offers a dividend yield of 2.7%, well above those of URA or URNM, reflecting its utility-heavy composition. Its expense ratio of 0.62% is the lowest of the three. The tradeoff is muted upside if uranium prices spike, since utilities do not re-rate the way developers do on a $10 move in spot U3O8.

CCJ carries an Alpha Score of 57/100 (Moderate) on AlphaScala's proprietary model, reflecting its central role in both URA and URNM.

The three funds map to three distinct views. URA offers the standard, liquid uranium exposure for investors without a strong view on how the recovery unfolds. Its breadth of holdings and lower cost position it as the broader-market option. A view that the recent sell-off overshot and that uranium spot prices are set for a sharp move aligns with URNM. The concentration in Cameco, NexGen, and physical uranium is the whole point. It will hurt more in the other leg down and pay more in a rally. A thesis centered on AI power demand rather than uranium prices is a fit for NLR. Constellation and PSEG do not need spot uranium to rise to benefit from data center contracts and grid capacity constraints. The yield is a bonus. NLR is the least obvious pick on this list and, for that specific view, the most defensible one.