In 2025, uranium ETFs ranked fourth in terms of thematic ETF net flows, raking in $1.1bn, according to ARK Invest Europe.
Energy demands, sustainability concerns and geopolitical tensions have all shone a light on nuclear energy as a 'one size fits all' solution, with both investors and institutions looking to benefit from uranium.
The radioactive element has already stolen headlines this year, as the US-Israel strikes against Iran hope to disrupt the Middle Eastern nation's uranium enrichment programme.
Oil prices surge as US-Iran conflict intensifies
Prices have fluctuated due to the conflict from a two-year high of over $101 per pound last month (29 January) to $86.2 today (4 March), according to data from Trading Economics.
Uranium ETFs have been launched this year by international firms such as UBS and BlackRock, and the theme is increasingly popular.
In 2025, uranium ETFs ranked fourth in terms of thematic ETF net flows, raking in $1.1bn, according to ARK Invest Europe, following global defence, Europe defence and AI with net flows of $6.3bn, $4.8bn and $2.6bn, respectively.
This was attributed to a global push for low-carbon baseload power, a push that is drawing attention to nuclear energy and has been for more than half a decade.
Investments in nuclear energy have grown by more than 70% over the past five years, according to the International Energy Agency.
Rahul Bhushan, global head of investment products at ARK Invest Europe, said: "Investors were drawn to uranium's role in supporting reliable electricity generation amid the electrification of transport, AI-driven data demand and decarbonisation targets.
"Tightening fuel supply chains, long-term contracting discipline and renewed political support for nuclear power across Europe and beyond further reinforced the investment case."
Net Zero Asset Managers Initiative relaunches with 250 signatories
Investment trust Geiger Counter, with total assets of £103.5m, aims to deliver returns to shareholders through investment in companies involved in the exploration, development and production of uranium to supply the nuclear power industry.
Robert Crayfourd, co-fund manager at the trust, explained that the view towards uranium has softened in the ten years since the trust's launch and has become rather positive.
He said: "Nuclear has gone from a negative environmental connotation to being seen as massively pro‑environmental. It has zero‑carbon baseload power that displaces coal and solves a lot of issues."
The interest in uranium and its energy contribution was due to a number of geopolitical factors colliding, according to Gregg Guerin, senior product specialist at First Trust.
The "big reason" First Trust started getting into nuclear again was the invasion of Ukraine by Russia in 2022 that "sent European power prices through the roof".
"One of the main reasons why it became worse was there was a lot of decommissioning of nuclear plants. Right as power became a supply factor, they were turning off supply," he explained.
This was followed by the rise of AI and tools such as ChatGPT, semiconductor growth, data centres, as well as demand for greener resources, which is when the world realised it was going to "need a lot of energy".
Investors told 'hold your nerve' as Iran strikes spur volatility
Crayfourd concurred: "We are seeing a lot of interest from investors around the AI theme. They made a load of money with their AI links, but tech stocks valuations look stretched, and they are looking for a better entry point into playing that theme, but without having the downside risk of a potential collapse of an AI bubble."
Opportunity within uranium and nuclear is expected to keep growing after, at COP30 in Brazil last year, over 30 countries agreed to, at least, triple their nuclear output by 2050.
"The nuclear supply chain is enormous. You first have to get uranium out of the mines. Then you have to enrich it, design the nuclear reactors, have actually active equipment, manufacturing and engineering," Guerin said.
"We are getting 30-50 years out of these things. It just takes a while to turn them on."
