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Proprietary Data Insights Financial Pros’ Top Copper Mining ETF Searches in the Last Month
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Pros Pick Their Top 5 Copper ETFs
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Copper prices are on absolute fire, 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
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.
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.
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.
Competition If you’re looking to gain exposure to copper, our TrackStar list includes several other ETFs worth considering
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. |
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