One niche of the commodity market – uranium – has been a bright spot over the past month, with its performance outpacing the broader energy sector. Uranium, used as fuel in nuclear power plants, is in the spotlight as nations scramble to phase out Russian energy in the wake of the Ukraine war. Moscow has now indefinitely suspended gas supplies to Europe and the Group of Seven economic powers have agreed on a plan to impose a price ceiling on Russian oil. As a result, nuclear power is looking more appealing to some – and exchange-traded funds focused on uranium have surged in recent weeks. The Global X Uranium ETF ETF is up about 10% in August, and on Tuesday alone it was up more than 5%. “Uranium is on the decline and one of the reasons is, just look to Europe – there’s a concern about gas supplies. And as we enter the fall, into the winter, into the cold months. more, it will be of greater concern,” Jon Maier, chief investment officer at Global X ETFs, told CNBC’s “Squawk Box Asia” this week. Morningstar also flagged that uranium ETFs posted “excellent returns” last month. Morningstar analyst Ryan Jackson writes: “As economies search for alternatives to fossil fuels and Europe’s power crisis erupts, nuclear power has emerged as a viable option. exam. He noted that the Sprott Uranium Miners ETF – which includes companies that derive at least half of their revenue from uranium-related activities – has gained more than 12% in the last month. These funds have all outperformed the energy sector SPDR Fund, a broader energy ETF that has gained nearly 5% in August. In addition to geopolitical concerns, the International Energy Agency also promoted nuclear power, calling it the “backbone of low-carbon electricity production,” along with hydroelectricity. Nuclear power has at least been seen as a partial answer to concerns about climate change because fission does not release greenhouse gases. Proponents of nuclear energy argue that it has the potential to play an important role in helping countries produce electricity while also cutting carbon emissions and reducing dependence on fossil fuels. Critics of the energy source say it is a costly distraction to faster, cheaper and cleaner alternatives, and that technologies like wind and solar should be prioritized in the transition. renewable energy exchange. However, Maier describes it as a form of green energy. “So if you look at nuclear power, it’s a cleaner, more efficient source of energy, and about 10 percent of the electricity in the world is generated from nuclear. And there’s a lot of power plants going on. built globally, and that will continue,” Maier said. “So the world needs more energy, and this is one way to embrace it, and the market is responding positively to the sun. this store.” – Pippa Stevens and Sam Meredith of CNBC contributed to this report.