Roundhill Investments Launches Uranium ETF (UX)

UX is the first U.S.-listed ETF designed to track the price of physical uranium.

NEW YORK, Jan. 29, 2025 /PRNewswire/ -- Roundhill Investments, an ETF sponsor focused on innovative financial products, is excited to announce the launch of the Roundhill Uranium ETF (UX), which began trading on Cboe BZX today. UX is the first U.S.-listed ETF to provide exposure to the price of physical uranium (U₃O₈).

While existing thematic equity ETFs may offer diversified exposure to the nuclear and/or uranium mining value chain, UX is the first U.S.-listed ETF designed to track the price of physical uranium. As a result, UX may be an attractive vehicle for investors looking to express a targeted view on uranium as a commodity.

"UX offers investors a pure-play ETF to gain exposure to uranium, the primary raw input used in nuclear energy generation," said Dave Mazza, CEO of Roundhill Investments. "As global electricity demand is expected to nearly double by 2050, and with AI-driven data center power needs projected to surge 160% by 2030, uranium is expected to play an increasingly vital role in ensuring stable energy supplies."

The uranium market is poised for considerable growth. Global uranium demand is expected to almost double by 2040, rising from 65,650 tons in 2023 to nearly 130,000 tons as more nuclear reactors are built to meet the world's increasing electricity needs.¹ However, the market faces significant supply constraints and has been in an extended imbalance. Even with utility inventories helping to fill the gap, the uranium market is expected to remain in deficit until at least 2029.² This dynamic underscores the growing importance of uranium in meeting escalating electricity demands worldwide.

¹ World Nuclear Association, The Nuclear Fuel Report International Energy Agency, World Energy Outlook (August 2024).
² Bloomberg Intelligence, Uranium global industry outlook (June 2024).

About Roundhill Investments

Founded in 2018, Roundhill Investments is an SEC-registered investment advisor focused on innovative exchange-traded funds. Roundhill's suite of ETFs offers distinct and differentiated exposures across thematic equity, options income, and trading vehicles. Roundhill offers a depth of ETF knowledge and experience, as the team has collectively launched more than 100+ ETFs including several first-to-market products. To learn more about the company, please visit roundhillinvestments.com.

Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about Roundhill ETFs, please call 1-855-561-5728 or visit the website at www.roundhillinvestments.com/etf/UX. Read the prospectus or summary prospectus carefully before investing.

Uranium Market Risk. While the Fund does not invest directly in uranium, it will have significant exposure to uranium as a result of derivatives (such as swap agreements) that utilize Spot Uranium, Uranium Companies or Uranium Trusts as the reference asset. Uranium prices are highly volatile due to the interplay of supply and demand dynamics, geopolitical developments, and regulatory changes.

Swap Agreements Risk. The Fund will utilize swap agreements to derive its exposure to the price of uranium. Swap agreements may involve greater risks than direct investment in securities as they may be leveraged and are subject to credit risk, counterparty risk and valuation risk. A swap agreement could result in losses if the underlying reference or asset does not perform as anticipated. In addition, many swaps trade over-the-counter and may be considered illiquid. It may not be possible for the Fund to liquidate a swap position at an advantageous time or price, which may result in significant losses.

Regulatory and Political Risk. Uranium is a heavily regulated commodity due to its use in nuclear energy and potential for nuclear proliferation. Changes in government regulations, international treaties, or geopolitical tensions can significantly impact uranium production, distribution, and consumption.

Environmental and Operational Risk. Uranium mining and processing involve significant environmental and social challenges, including radioactive contamination, water usage, land use conflicts and waste management.

Supply Chain Risk. The uranium supply chain is geographically concentrated, with major production coming from a few countries such as Kazakhstan, Canada and Australia.

Counterparty Risk. Any swap agreements utilized by the Fund will be subject to counterparty risk between the Fund and its swap counterparties. Fund transactions involving a counterparty are subject to the risk that the counterparty will not fulfill its obligation to the Fund.

Concentration Risk. The Fund may be susceptible to an increased risk of loss, including losses due to adverse events that affect the Fund's investments more than the market as a whole, to the extent that the Fund's investments are concentrated in investments that provide exposure to uranium.

New Fund Risk. The Fund is a recently organized investment company with a limited operating history.

Exposure Concentration Risk. It is currently expected that the Fund will derive a significant amount of its economic exposure to uranium as a result of swap agreements that reference the Sprott Uranium Trust and Yellow Cake. As a result, the Fund's performance will be highly dependent on the performance of the Sprott Uranium Trust and Yellow Cake. If, for whatever reason, shares of the Sprott Uranium Trust or Yellow Cake were to be delisted or lose their entire value, Fund Shares would also be expected to suffer a catastrophic loss of value. To the extent that the returns of the Sprott Uranium Trust or Yellow Cake do not match those experienced by the uranium market, the Fund's returns will correspondingly fail to match such returns. The Fund's strategy makes the Fund extremely susceptible to issuer-specific events relating to the Sprott Uranium Trust and Yellow Cake that may not necessarily affect the uranium market more broadly. This inherently makes an investment in the Fund riskier than an investment in a fund that provides more diversified exposure. Neither the Fund, Adviser nor Sub-Adviser have conducted due diligence upon the Sprott Uranium Trust or Yellow Cake and make no representations or warranties whatsoever regarding the Sprott Uranium Trust's or Yellow Cake's ability to acquire, dispose of or maintain proper custody of uranium. In the event that there is an issue regarding the Sprott Uranium Trust's or Yellow Cake's ability to acquire, dispose of or maintain proper custody of uranium, the Fund's returns will be negatively impacted to a significant degree.

Non-Diversification Risk. As a "non-diversified" fund, the Fund may hold a smaller number of portfolio securities than many other funds.

Roundhill Financial Inc. serves as the investment advisor. The Fund is distributed by Foreside Fund Services, LLC, which is not affiliated with Roundhill Financial Inc., U.S. Bank, or any of their affiliates.

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SOURCE Roundhill Investments