One niche in the commodities market – uranium – has been a beacon of hope over the past month, with its performance outpacing even that of the broader energy sector. Uranium, used as fuel in nuclear power plants, is in the spotlight as countries scramble to wean themselves off Russian energy after the war in Ukraine. Moscow has now cut gas supplies to Europe indefinitely and the Group of Seven economic powers have agreed to a plan to impose a price cap on Russian oil. As a result, nuclear power looks more attractive to some – and uranium-focused exchange-traded funds have risen in recent weeks. ETF The Global X Uranium ETF was up about 10% in August, and on Tuesday alone it rebounded more than 5%. “Uranium is on a tear and one of the reasons is, just look at Europe – there’s a concern about gas supply. And as we come into the fall, into the winter, in the colder months, that’s going to be a bigger concern,” Jon Maier, chief investment officer at Global X ETFs, told CNBC’s “Squawk Box Asia” this week. Morningstar also reported that uranium ETFs posted “great returns” last month. “As economies seek alternatives to fossil fuels and a European energy crisis looms, nuclear power has emerged as a viable option,” wrote Morningstar analyst Ryan Jackson. He noted that the Sprott Uranium Miners ETF – made up of companies that derive at least half of their revenue from uranium-related operations – had risen more than 12% last month. Find out more Positioning for a “bullish shock” on the oil markets? Here are a strategist’s best moves to cash in on Tesla or Rivian? Analyst measures them and gives 190% upside This chip stock has convincingly beaten its peers this year – and analysts believe it can go higher These funds have both outperformed the Energy Select Sector SPDR fund well , a broader energy ETF, which rose almost 5% in August. Besides geopolitical concerns, the International Energy Agency has also promoted nuclear power, calling it the “backbone of low-carbon electricity generation”, alongside hydroelectricity. Nuclear power has been seen as at least a partial answer to climate change concerns since fission does not release greenhouse gases. Proponents of nuclear power say it has the potential to play a major role in helping countries generate electricity while reducing carbon emissions and reducing their dependence on fossil fuels. Critics of the power source say it’s a costly distraction to faster, cheaper and cleaner alternatives, and that technologies such as wind and solar should be prioritized in the transition towards renewable energies. However, Maier described it as a form of green energy. “So if you look at nuclear energy, it’s a cleaner and more efficient source of energy, and about 10% of the world’s electricity is generated from nuclear energy. And there are many power plants under construction around the world, and it will continue,” Maier said. “So the world needs more energy, and this is a way to get it back, and the market is reacting positively to this raw material.” – CNBC’s Pippa Stevens and Sam Meredith contributed to this report.