URNM September Rebalancing

With the URNM rebalancing coming up, it is important to try to understand some of the methodology of the URNM ETF, because Elevate will likely be added into this, resulting in millions of EL8 shares being price-indiscriminately purchased as it is added to the ETF.

The URNM ETF created by Tim Rotolo, who identified the opportunity in uranium and felt that the sector was being poorly served by the Solactive Uranium ETF (URA) and created an alternative ETF to better serve investors.

Here is an interview released yesterday of Tim Rotolo explaining how and why the URNM ETF was created and how it is structured to create better torque for the uranium investor than URA, by adding higher percentage allocations to uranium juniors. It is a long video worth watching, but the most relevant information for Elevate is from 16:43 => 20:40.


For those that were asking when the rebalancing for URNM is, it was changed on June 8th 2021 (image below) to rebalance on a semi-annual basis in March and in September.


URNM currently has AUM of USD$631.4m and with the single security floor of 0.3%, this equates to at least USD$1.89m (A$2.61m) worth of EL8 shares that will need to be purchased, which is at least 4.66m shares assuming the share price remains at A$0.56. With only two trading days left in the month this rebalancing is due imminently.