Q: Can you give me your assessment on U.UN? Is this a good time to get in? Would you recommend another name in this space?
Thanks
Thanks
5i Research Answer:
The fund just owns physical uranium, and we think is fine for those that want physical exposure. Its five year return is +16.19% so it certainly has performed well. It trades at a discount to NAV of 7%. The sector has done well as companies get back on the nuclear energy bandwagon. We think timing is decent here. But, physical funds pay no dividends, and there are fees. Uranium stocks will often do better in a rally (but carry more risk and single company exposure). URNM has stellar (42%) three year returns and would most likely provide more potential in a sector rally.