Adding to the growing available exchange traded fund (ETF) selection, Global X, a fund provider more notably known for its line of ETFs targeting specific industries in emerging markets, will launch two new funds focused on global copper mining and silver mining companies.
The Global X Copper Miners ETF (NYSEArca: COPX) and the Global X Silver Miners ETF (NYSEArca: SIL) both began trading this morning. Global X CEO Bruno del Ama says that these funds round out the spectrum on which investors can play metals. On one side is gold, which is almost purely a precious metal. Silver has uses on both the precious metal and industrial side, and copper is almost exclusively an industrial metal.
“If you want to play the growth of the economy, silver and copper are the way to do that,” del Ama says. “Industrial production is increasing and there’s demand for industrial-based metals.”
The benefits of commodity funds that hold equities, del Ama points out, are that they avoid some of the problems associated with other types of commodity ETFs and may be an alternative for investors who want to avoid them. Futures-based funds can be impacted by contango, and the Commodity Futures Trading Commission (CFTC) has been investigating such funds to see if position limits should be enforced.
The Global X Copper Miners ETF (NYSEArca: COPX) tries to reflect the performance of the Solactive Global Copper Miners Index, which is designed to match the performance of the global copper mining industry. COPX has 30 holdings and has an expense ratio of 0.65%. [Why You Should Plug Into the Copper ETF Rally.]
- Country allocations include: Canada 44%, Britain 14%, Australia 12%, U.S. 10%, Poland 5%, Mexico 5% and South Africa 1%.
The Global X Silver Miners ETF (NYSEArca: SIL) tries to reflect the performance of the Solactive Global Silver Miners Index, which is designed to match the performance of the global silver mining industry. SIL has 25 holdings and has an expense ratio of 0.65%. [Silver ETFs: 5 Reasons It May Be Their Time.]
- Country allocations include: Canada 58%, Mexico 24%, U.S. 10%, Russia 4% and Peru 4%.
Also forthcoming from Global X are the Global X Gold Miners ETF, which will have an expense ratio of 0.59% and the Global X Platinum Miners ETF, which will have an expense ratio of 0.65%. Global X hasn’t provided a ticker symbol for either of the proposed funds and hasn’t specified a launch date.
For more information on metals and mining, visit our metals & mining category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.