8 February 2024: Wealth Product Ideas
Uranium: Nuclear Becoming Key on Transition to Green
Uranium is a heavy, dense, and radioactive metal, making it a potent source of concentrated energy. Uranium fuel enables nuclear power plants to generate electricity.
- Nuclear power is one of the few sources of electricity that combines large-scale power output and low greenhouse gas emissions, with costs comparable to those of traditional fossil fuel power stations.
- Nuclear reactors generate electricity by producing immense heat, by splitting uranium-235 atoms in the process of nuclear fission.
- Ongoing fuel costs for nuclear power plants tend to be quite low, given the minimal amount of uranium needed to power the plant.
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Advantages of nuclear power that uses Uranium:
- Fuel costs are low, given the minimal amount of uranium needed to power the plant.
- Nuclear is also among the cleanest methods of producing electricity in terms of greenhouse gas emissions.
Fund Name (Ticker) | Global X Uranium ETF (URA) |
Description | The Global X Uranium ETF (URA) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Uranium & Nuclear Components Total Return Index. |
Asset Class | Equity |
30-Day Average Volume (as of 6 Feb) | 2,808,798 |
Net Assets of Fund (as of 6 Feb) | US$2,970,000,000 |
12-Month Yield (as of 6 Feb) | 5.43% |
P/E Ratio (as of 5 Feb) | 33.50 |
P/B Ratio (as of 5 Feb) | 2.32 |
Management Fees (Annual) | 0.69% |
Top 10 Holdings
(as of 6 February 2024)
(Source: Bloomberg)
Quantum computing is expected to drive current technological leaps
The computing power of Quantum Computing is outstanding and has become a hot topic in a new round of technological war for various countries and enterprises.
- Google announced a major breakthrough in July last year. Its Sycamore quantum processor which can complete calculations in 6.18 seconds, took the world’s most advanced supercomputer 47.2 years, demonstrating the cross-generational capabilities of quantum computing. Quantum computing is one of the fields included in the ban on investment in Chinese companies signed by Biden last August, showcasing its importance.
- If quantum computers take off, they are expected to bring a new wave of breakthroughs to industries such as AI, biotechnology, finance, etc., and the prospects are promising.
- Dell CEO also said that quantum computing will promote the leap forward in AI capabilities, showing the importance it attaches to quantum computing. According to estimates by research institutions, quantum computing’s market size will reach US$125 billion by 2030.
Opportunities: Companies continue to develop new results and applications for quantum computing, driving the stock price performance of related companies
Risk: Poor economic performance or the escalation of the U.S.-China technology war will affect the short-term stock price performance of related companies.
Fund Name (Ticker) | Defiance Quantum ETF (QTUM) |
Description | The BlueStar Quantum Computing and Machine Learning Index comprised of equity securities of leading global companies engaged in research and development or commercialization of systems and materials used in quantum computing: advanced traditional computing hardware, high-powered computing data connectivity solutions, and cooling systems, and companies that specialize in the perception, collection, and management of heterogeneous big data used in machine learning. |
Asset Class | Equity |
30-Day Average Volume (as of 6 Feb) | 29,446 |
Net Assets of Fund (as of 5 Feb) | US$218,830,000 |
12-Month Trailing Yield | 24.37% |
P/E Ratio (as of 6 Feb) | 55.535 |
P/B Ratio (as of 6 Feb) | 3.283 |
Management Fees (Annual) | 0.40% |
Top 10 Holdings
(as of 06 February 2024)
(Source: Bloomberg)
