Pros Pick Their Top 5 Copper ETFs

Copper prices are on absolute 🔥🔥, with futures up more than 40% since February.

Analysts point to China’s recent efforts to stimulate its economy along with a global shift towards renewable energy as the culprits.

That could spell higher prices for longer.

So, what’s the best way to play this craze?

Our TrackStar data highlighted five ETFs as the top searches by financial pros in the sector.

At the top of the list was Global X Miners ETF.

Sector search volume isn’t high…yet.

But we expect that’s about to change.

Key Facts About COPX

• Net assets: $2.5 billion
• 12-month trailing yield: 1.81%
• Inception: April 19, 2010
• Expense ratio: 0.65%
• Number of holdings: 41

COPX is Global X’s copper miners ETF that tracks the Solactive Global Copper Miners Total Return Index.

This is an equal-weighted index of international companies active in copper exploration, mining, and refining.

Source: Global X

With copper mining largely located outside the U.S., only 10.7% of the exposure is domestic. The rest is international, with a third tied to Canadian companies.

Source: Global X

Performance

Copper miners benefit from higher copper prices, assuming their input costs don’t change.

That’s why the ETF has gained 8% in May alone on top of a stunning performance since February.

Source: Global X

Competition

If you’re looking to gain exposure to copper, our TrackStar list includes several other ETFs worth considering

• United States Copper Index Fund (CPER): For more direct exposure, the CPER holds copper futures as a way to track the spot price of copper.
• SPDR S&P Metals & Mining ETF (XME): The XME is a broader metals and mining ETF that includes copper and other metal miners.
• Sprott Copper Miners ETF (COPP): A newer ETF, COPP is Sprott’s copper miner ETF that uses a market cap-weighting instead of equal-weighting.
• iShares MSCI Global Select Metals & Mining Producers ETF (PICK): PICK is the iShares version with broader metals and mining ETF than the XME.

As you can see, futures-based ETFs can be problematic. And the broader metals and mining sector hasn’t performed as well as the copper sector.

Our Opinion 10/10 

Global X’s COPX is a great way to gain exposure to the copper industry.

It’s very liquid, with monthly options available.

We’re also interested to see how COPP does with its market-cap weighted approach – a methodology that’s outperformed equal-weighting in the energy sector.