SRUUF Review: Is Sprott Physical Uranium Worth Buying?

Sprott Physical Uranium Trust holds physical uranium oxide (U3O8) in storage, offering the most direct publicly-traded exposure to uranium spot prices without mining operational risk — effectively a uranium bullion vehicle that also removes supply from the market, tightening the physical balance.

Last updated: 2026-02-02 · Data: Yahoo Finance, fund prospectuses, SEC filings

What Is SRUUF?

The Sprott Physical Uranium Trust holds physical uranium oxide (U3O8) in secure storage facilities, providing direct exposure to uranium spot prices without the operational risks of mining companies. Managed by Sprott Asset Management, this closed-end fund trades on the OTC markets and tracks the underlying commodity through physical holdings rather than derivatives or equity positions.

Key Metrics: 0.85% expense ratio, $6.4B AUM, launched August 2021

Current Snapshot

Why It Matters for Real Asset Investors

SRUUF represents the purest play on our Grid Risk thesis — the idea that aging infrastructure, data center demand, and AI power requirements will eventually force a nuclear renaissance. While utilities debate timelines, uranium sits at the chokepoint of any nuclear expansion because mining supply takes years to develop while existing reactors already consume 85% of annual production.

The trust's physical backing matters because uranium markets are opaque and thinly traded. Paper contracts can disconnect from reality, but physical uranium creates real supply pressure. When SRUUF purchases material for storage, those pounds can't simultaneously fuel reactors, creating a supply squeeze that benefits the spot price that determines the trust's value.

This ETF shines during nuclear sentiment shifts and supply crunches, but struggles when broader commodity cycles turn negative or when nuclear policy faces political headwinds. The 80% price swing from 2024 lows to recent highs reflects uranium's volatility — it moves like a venture capital bet, not a utility stock.

Top Holdings

SRUUF holds only physical uranium oxide stored in facilities across Canada and the United States. Unlike mining ETFs, there's no operational risk from individual companies — just direct exposure to the spot uranium price. The trust's holdings represent approximately 59 million pounds of U3O8, making it one of the largest uranium buyers outside of utility companies and governments.

How It Fits the Portfolio

SRUUF works as a concentrated bet on nuclear fuel scarcity rather than a broad infrastructure holding. Position sizing should reflect its venture-like volatility — this isn't a 10% allocation unless you're convinced the nuclear renaissance happens within your investment timeline. Most real asset portfolios benefit from 1-3% exposure, treating uranium as portfolio insurance against grid instability rather than a core holding.

The trust pairs well with utility stocks and grid infrastructure plays because it captures the fuel bottleneck while other positions benefit from the actual power generation. When data centers scramble for clean baseload power, uranium prices could spike while utility dividends remain stable, creating complementary return streams.

Regime Signals

SRUUF outperforms when nuclear sentiment improves — think Three Mile Island restarts, new reactor announcements, or data center power shortages making headlines. The trust also benefits from supply disruptions in Kazakhstan (which produces 40% of global uranium) or sanctions affecting Russian nuclear fuel exports.

The position struggles during broad commodity selloffs, risk-off periods, or when renewable energy appears to solve power grid challenges without nuclear assistance. Rising interest rates hurt because uranium generates no current income, making the opportunity cost of holding non-yielding commodities more expensive.

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Frequently Asked Questions

What makes SRUUF unique among uranium investments?

SRUUF is the only major publicly-traded vehicle that holds physical uranium oxide. When investors buy units, Sprott uses the capital to purchase physical U3O8 in the spot market, storing it in licensed facilities. This means SRUUF both tracks uranium prices and actively tightens supply — a reflexive mechanism where investor demand directly reduces available uranium inventory, potentially accelerating price appreciation.

How does SRUUF trade and what is its structure?

SRUUF trades on the OTC market in the U.S. (and as U.UN on the Toronto Stock Exchange). As a closed-end physical trust, it can trade at a premium or discount to the net asset value of its uranium holdings. Sprott can issue new units via at-the-market (ATM) offerings when the trust trades at a premium, using proceeds to buy more physical uranium. This ATM mechanism has made Sprott a significant buyer in the spot uranium market.

What are the risks of investing in SRUUF?

SRUUF carries concentrated commodity price risk — it moves essentially 1:1 with uranium spot prices. Unlike miners, there is no operating leverage to amplify returns, but also no operational risk to erode them. The OTC listing means lower liquidity and wider spreads than TSX-listed U.UN. Additionally, uranium is a politically sensitive commodity; regulatory changes around nuclear power globally can significantly impact prices in both directions.

Why do Energy Macro investors use SRUUF?

SRUUF provides the cleanest exposure to the uranium supply-demand thesis without mining company management risk, cost inflation, or jurisdictional issues. It is the uranium equivalent of holding physical gold through GLD. For investors who believe the uranium supply deficit will drive prices significantly higher, SRUUF delivers direct participation. The reflexive supply-removal mechanism is an added catalyst that no mining ETF offers.

For our complete allocation framework across real assets, infrastructure, and income strategies, see The Blackout Fortune Playbook.

Last updated: February 1, 2026 | Data: Yahoo Finance, Sprott filings