ASX shares hunting for and digging up uranium have been on fire over the past 12 months.
Here's how these four leading ASX uranium shares have performed since this time last year:
- Paladin Energy Ltd (ASX: PDN) shares have gained 22%
- Bannerman Energy Ltd (ASX: BMN) shares have gained 30%
- Deep Yellow Limited (ASX: DYL) shares have gained 75%
- Boss Energy Ltd (ASX: BOE) shares have gained 75%
For some context, the All Ordinaries Index (ASX: XAO) is up 1% over this same period.
These stocks have all benefited from a roughly 50% rise in the uranium price in 2023, as increased demand for the radioactive metal has stretched current supplies thin.
That boost sees uranium prices up 125% since late 2020.
The uranium boom comes amid renewed interest in nuclear energy from some of the world's richest nations, including the United States, India, the United Kingdom, China, the European Union and Japan.
While the Fukushima disaster is far from forgotten, governments are increasingly turning to nuclear-generated power solutions to provide reliable electricity while still slashing their carbon emissions.
The recent advent of small-scale nuclear plants has also seen increased interest in nuclear power, spurring interest in ASX shares active in the sector.
And with a nod to the world's ambitious carbon reductions, the International Energy Agency (IEA) forecasts that global nuclear power generation will have to double by 2050.
Gaining exposure with one ASX share
With that picture in mind, investors wanting to get exposure to the uranium boom have several options.
One of those is to research a range of ASX uranium shares and gauge which ones they believe are the least risky and the most likely to outperform.
For investors with the time and skills to do so, that's a fine option.
But for investors looking for exposure to a range of uranium stocks with a single ASX share, there's another, simpler option to consider. One that offers instant diversification within the sector with a single investment.
Namely, one of several ASX exchange-traded funds (ETFs) that are intended to track the performance of a basket of Aussie and international uranium miners.
Like the Betashares Global Uranium ETF (ASX: URNM), for example.
URNM's top four holdings are:
- NAC Kazatomprom JSC
- Cameco Corp
- Sprott Physical Uranium Trust
- CGN Mining Co LTD
But you'll also find two ASX uranium producers in the ETF's top 10 holdings, Boss Energy and Paladin Energy. In fact, Australia is second only to Canada in terms of URNM's country allocation.
The ETF has been riding high on the uranium boom, up 45% in a year.
And if the IEA forecasts of a doubling of global nuclear power capacity by 2050 prove correct, there could be more strong performance in the years ahead for this diversified ASX share.
