Interest in the copper markets is exploding! Prices in this cyclical market hit generational lows recently and have started to rally. The world is catching on to the fact we’ve been sharing with you for years: Copper is the ESSENTIAL element for any energy transition.
And last week, I wrote to you with a list of top copper stocks to buy. But it occurred to me after sending it that some people’s risk tolerance just isn’t up to betting on individual stocks. So this week, I wanted to give you a list of copper ETFs. These will give you exposure to a basket of investments and diversify away some of the risk of betting on individual companies.
Because you already know from all my previous articles how important copper is to the future of the global economy, I won’t tell you about that today. And we’ll skip right to the best part: this week’s list. Now let’s talk about some of the copper ETFs you can buy… Join Wealth Daily today for FREE. We’ll keep you on top of all the hottest investment ideas before they hit Wall Street. Become a member today, and get our latest free report: “How to Make Your Fortune in Stocks.” It contains the best dividend growers to add to your portfolio and full details on why dividends are an amazing tool for growing your wealth. After getting your report, you’ll begin receiving the Wealth Daily e-Letter, delivered to your inbox daily.The Best Free Investment You’ll Ever Make
Copper ETFs for Copper Miners
When it comes to copper ETFs that focus on companies that mine copper, the biggest one out there is the Global X Copper Miners ETF (NYSE: COPX). It’s also one of the best options for investors. It focuses on major copper companies all over the world. Its top 10 holdings are as follows:
- Antofagasta PLC
- Ivanhoe Mines Ltd.
- Lundin Mining Corp.
- Southern Copper Corp.
- Zijin Mining Group Co. Ltd.
- Freeport-McMoRan Inc.
- KGHM Polska Miedz SA
- BHP Group Ltd.
- Teck Resources Ltd.
- Sumitomo Metal Mining Co. Ltd.
And it’s got $1.4 billion in assets under management, so it’s one of the most liquid copper ETFs available. Better yet, this copper ETF pays a dividend to investors. And those dividends add up to extra profits in big rallies like we’re expecting copper to go through. Shares have come up a good deal since I first started advising you to look at copper investments. They’re up a double digits in the past two months, too:
But there’s still likely a good deal to go. Shares have been as much as 50% higher in the past. That international exposure, dividend, and growth potential make this one of the top copper ETFs everyone should consider.
Copper ETFs for Junior Miners
But when it comes to copper and copper ETFs, you can’t just stop with major mining companies. Those are the more stable bets, but they’re not the most profitable. That honor goes to the junior miners. And fortunately for the more risk-averse investor, there are some good choices for junior copper ETFs, too.
My favorite is run by an operation out of Toronto that’s got a long and profitable history in the mining sector, Sprott Asset Management. The Sprott Junior Copper Miners ETF (NASDAQ: COPJ) is their specialized offering for investors looking for copper ETFs with a focus on the junior miners all around the world:
- Campañía de Minas Buenaventura SAA
- Ero Copper Corp.
- Hudbay Minerals Inc.
- Capstone Copper Corp.
- Sandfire Resources Ltd.
- Taseko Mines Ltd.
- NGEx Minerals Ltd Ordinary Shares
- China Gold International Resources Corp. Ltd.
- Filo Corp.
- Foran Mining Corp.
And like the last of our copper ETFs, it’s been on the move this year, too. But if copper prices do what we expect, this could be just the start of something far bigger.
Copper ETFs for Copper Itself
But there’s always another way for investors to play a trend in the markets. And that’s true with copper ETFs as well. You see, there’s the metal itself. This is a commodity that’s traded on the open markets. And there are copper ETFs that will let you bet that prices are going to go up in the future…
That’s where the United States Copper Index Fund (NYSE: CPER) really shines for investors looking for copper ETFs. It’s an ETF that makes investing in the copper futures market incredibly easy for anyone, no matter their level of experience.
It’s been on a rip, too, just like our first two copper ETFs. And it was up double digits in the past month, just like the others. But it’s recently pulled back and could represent the biggest pricing mismatch when it comes to copper ETFs…
The Bottom Line
The bottom line here is that investors — all investors — need to consider an allocation to copper. And even investors who prefer to stay away from individual stocks have a lot of options when it comes to copper ETFs. The three we’ve discussed today are three of many. They’re three of the top copper ETFs. But there are other great copper investments out there for those willing to look.
And as someone who’s reading Wealth Daily (for the first time of for the millionth time), I know you’re someone who’s willing to look. You’re out here right now looking for copper ETFs and other investment tips. And you’re in the right place.
As I said earlier, I’ve been telling investors like you that they need to be getting exposure to copper for a long time. And I’ve been giving out tips here and in my premium investment communities — not just about copper ETFs, but about some of the best copper stocks to buy as well.
So today, since I’ve already shared all of my favorite copper ETFs with you, I want to share one last copper stock. And I want to invite you to learn why I’m convinced it’s the best copper investment out there in a free research report I shared with those in my premium communities already.
Finally, I also want to invite you to keep coming back to Wealth Daily and our sister site, Energy and Capital, to stay ahead of the trends. Then, instead of investing in these great copper ETFs today, you’ll already own them before the crowd wants to get in on the action.
To your wealth, Jason Williams After graduating Cum Laude in finance
and economics, Jason designed and analyzed complex projects for the U.S. Army. He made the jump to the private
sector as an investment banking analyst at Morgan Stanley, where he eventually led his own team
responsible for billions of dollars in daily trading. Jason left Wall Street to found his own
investment office and now shares the strategies he used and the network he built with you. Jason
is the founder of Main Street
Ventures, a pre-IPO investment newsletter; the founder of
Future Giants, a nano cap investing service; and authors The Wealth Advisory income stock
newsletter. He is also the managing editor of Wealth
Daily. To learn more about Jason, click here. Want to hear more from Jason? Sign up to receive emails directly from him ranging from market commentaries to opportunities that he has his eye on.