Nuclear power is reclaiming its position as a critical energy source in the global shift toward clean, sustainable power. As nations pursue reliable energy to support economic growth and environmental goals, uranium, the key element in nuclear power production, is coming into sharper focus.
For financial advisors, the Sprott Uranium Miners ETF (ticker: URNM) offers a targeted investment opportunity to tap into the long-term potential of uranium and the broader clean energy movement. With bipartisan support for onshoring critical materials and a global push to expand nuclear capacity, URNM’s focus on uranium miners offers stability and long-term growth potential.
Steve Schoffstall, Director of ETF Product Management at Sprott Asset Management, joined The Wealth Advisor’s Scott Martin to discuss URNM’s strategic role in the energy transition and explain why uranium miners are foundational to clean energy’s future. Schoffstall outlines how political, economic, and technological trends are shaping the uranium market and driving the ETF’s appeal.
Bipartisan Support and Strategic Onshoring
The growing need for secure domestic supply chains underpins the bipartisan push for onshoring critical materials like uranium. “There’s broad support on the onshoring front from both Republicans and Democrats,” Schoffstall says. “Hopefully, they’ll be able to work together to continue to move the supply chain more domestically and reduce our reliance on other countries.”
The unified focus on reshoring is complemented by shifts in energy and mining policy. Schoffstall notes that the current political landscape favors mining expansion: “We think that the Trump administration is likely to put even more emphasis on mining as that relates to potentially scaling back some aspects of cleaner energy initiatives.”
The focus aligns with the broader strategy of securing domestic resources and reducing dependence on foreign suppliers. With Republicans in control of the White House and Congress, Schoffstall anticipates accelerated permitting for natural gas drilling and uranium mining, though incremental progress is expected due to narrow majorities.
Uranium: The Cornerstone of Clean Energy
Nuclear energy’s role in addressing climate change and energy reliability is gaining momentum worldwide. URNM positions investors to benefit from this trend by focusing on the upstream segment of the nuclear energy value chain: uranium miners.
“We view uranium to be a critical material, and it’s not just about the energy transition,” Schoffstall explains. As countries increasingly adopt nuclear power to meet rising energy demands, uranium’s importance as a fuel source grows.
According to the Department of Energy, nuclear energy provided 48% of America’s carbon-free electricity in 2023, and accounts for nearly 20% of all electricity generated across the country — underscoring its role as the largest domestic source of clean energy.
Globally, countries like China are rapidly expanding their nuclear capacity. Over the past decade, China added more than 34 gigawatts (GW) of nuclear power, with 23 reactors currently under construction, according to the U.S. Energy Information Administration.
At the recent United Nations Climate Change Conference (COP 28), Schoffstall notes, more than 20 nations committed to tripling nuclear capacity by 2050. Countries such as the UK aim to quadruple their nuclear output, while China continues its aggressive reactor buildout, adding eight to 10 reactors annually, Schoffstall says.
Why Uranium Miners?
URNM differentiates itself by focusing on uranium miners rather than broader energy or technology sectors. The focused strategy offers investors stability and direct exposure to the increasing demand for uranium.
“We focus on miners because you’re not really beholden to tax credits or which technology comes into favor or out of favor,” Schoffstall says. “Once you go upstream on something like nuclear energy, you know we’re going to need a certain amount of uranium to come out of the ground.”
By concentrating on the mining sector, URNM captures the structural demand for uranium, independent of short-term policy shifts or energy technology trends. It can also provide a hedge against global supply chain risks, as onshoring efforts further stabilize domestic production, making them a stable investment.
A Resurgence in Uranium
The uranium market is entering a transformative period. “We’re at a much different spot in the market and the acceptance of nuclear energy than we were just even three or four years ago,” Schoffstall says.
The industry’s bullish outlook stems from expanding nuclear infrastructure globally, increased corporate investment in nuclear-adjacent technologies like small modular reactors, and a growing recognition of nuclear energy’s role in powering data centers and other high-energy-demand sectors.
Nuclear energy’s ability to operate continuously for long periods—unlike intermittent sources like solar or wind—makes it an attractive option as the world seeks cleaner and more reliable energy solutions. In 2023, U.S. nuclear power plants operated at full capacity 93% of the time, according to the Department of Energy, making nuclear energy one of the most dependable sources of electricity.
Portfolio Applications for URNM
URNM offers advisors a versatile addition to client portfolios. “There are two main ways we see it used,” Schoffstall explains. “First, as part of the energy portfolio, because uranium miners aren’t typically included in broader market-based strategies. Second, as part of a high-growth or tactical allocation.”
URNM’s international exposure further enhances its appeal. Investors gain access to global uranium mining firms often unavailable through standard brokerage accounts. Additionally, the ETF structure provides liquidity and tax efficiencies, making it a practical vehicle for uranium investment.
With its focus on miners, URNM positions investors to benefit from the structural growth in uranium demand while avoiding reliance on policy-dependent technologies. Schoffstall describes it as a “mid- to long-term play” supported by robust global trends.
As nuclear energy continues to gain traction as a clean, reliable power source, URNM provides a timely opportunity for advisors to align client portfolios with emerging developments.
“It’s an exciting time,” Schoffstall concludes, “and we think we’re still in the early stages of a long-term growth cycle for the uranium space.”____________________
Additional Resources
- Contact Sprott Asset Management
- Sprott Uranium Miners ETF (URNM) Fact Sheet
- Nuclear Revival: A Resurgence for Uranium Miners
- Sprott Uranium Report: Big Tech Targets Nuclear Energy to Support AI Ambitions
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