URAX offers you exposure to the ten largest companies in the sector
SocGen has a UK-based index fund, trading under "URAX" that tracks its own uranium index, the World Uranium Total Return index. The Index was launched on 30 November 2006.
The Index tracks the performance of the world uranium sector and includes the 10 largest global companies operating in the fields of uranium mining and processing.
Stocks for the Index are selected by Dow Jones Indexes for their representativeness of the whole uranium industry. The World Uranium Total Return index members are the largest and most liquid stocks from the list of eligible companies.
Index components are ranked according to their free-float market capitalisation and market liquidity. The components are re-weighted on a quarterly basis. The minimum weighting for each company is 5% and maximum is 15%.The resulting changes to the Index are implemented after the closing on the third Friday in March, June, September, and December and are effective the next trading day.
Currently, as per September 30th, 2010, the top three companies by weighting include miners with major uranium interests, such as BHP Billiton, Rio Tinto and Cameco. While the former two, represent over 30 per cent of the Index are hardly pure uranium miners, Cameco also has major gold producing assets.
URAX is hedged in GBP so, although the base currency of the underlying index is EUR, investors are protected from currency fluctuations. Management Fees: 1% p.a. The Tracker can be held as a direct investment, in a SIPP or an ISA. No stamp duty is payable on trades. The minimum trade size is £1,000.
Why invest in a tracker such as URAX
Investing in a uranium index tracker is an easy way to get exposure to companies operating in the fields of uranium mining and processing.
There are several other uranium mining and nuclear energy related trackers and ETFs that I am aware of each with varying amounts of uranium mining and nuclear energy exposure, including: