November 5, 2010

Uranium-Mining ETF to Trade in New York, Global X Says

The world’s first exchange-traded fund linked to uranium-mining companies will begin trading in New York tomorrow, according to Global X Management Co., the issuer of the security.
The ETF will track an index that consists of 23 miners and refiners including Cameco Corp., the world’s second-largest uranium producer, Uranium One Inc. and Paladin Energy Ltd., said Bruno del Ama, the chief executive officer of Global X. The shares will initially sell for $15 each, and the ticker for the fund listed on the NYSE Arca stock exchange will be URA, he said.
“There are a lot of nuclear reactors being built around the world, and there’s already a short supply of uranium,” del Ama said. “With new demand coming into play, that’s going to increase prices of uranium, and obviously the mining companies that produce uranium are going to benefit tremendously from that.”
Global X, a New York-based asset manager, also has an ETF tracking gold-exploration companies that will begin trading today. The ticker of the fund, which tracks 30 explorers, is GLDX, del Ama said by telephone yesterday.
“There’s going to be a huge amount of interest,” he said. “We’ve seen a lot of inquiries from hedge funds, institutional investors and retail investors.”
Global X also provides ETFs linked to silver and copper miners.

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