invest substantially all of its assets in uranium, either in the form of uranium oxide in concentrates or uranium hexafluoride, with the primary investment objective of achieving appreciation in the value of its uranium holdings. The objective of the Corporation is to provide an investment alternative for investors interested in holding uranium.
In other words, this fund will rise if the price of Uranium rises, and vice versa. One thing that I've noticed with the price of Uranium, is that it is very uncorrelated to most other markets. For example, if the Dow declines 400 points tomorrow, this fund could actually rise, which means that it can add diversification to a typical stock only portfolio:
As you can tell from the above chart, the price of Uranium has not been exceptionally strong. However, if you take this fund and compare it to the CRB commodity index, you can see that Uranium is nevertheless outperforming most other commodities:
Personally, I would not buy or short sell this fund at this time. The 50dma is trading below the 200dma, which is indicative of a long term bearish trend. However, the fund is now trading above its 50dma, which is indicative of short term bullish trend. Put another way, this chart is giving off mixed messages, which is fine, since there are hundreds of other ETFs for me to chose from.
