That says COPX is getting help from plenty of sources beyond Freeport and that the copper miners rally is indeed broad-based. COPX tracks the Solactive Global Copper Miners Index, which gives the ETF substantial global exposure. Over 56% of the ETF’s combined weight is allocated to Canadian and Australian companies.
Although emerging markets are some of the world’s largest copper producers, COPX’s exposure to developing economies is scant. For example, Chile, the world’s largest copper producer, is nowhere to be found in the ETF. Overall, five emerging markets combine for under 20% of COPX’s weight.
Speaking of Chile, investors thinking about the iShares MSCI Chile Capped ETF (NYSEArca: ECH) as a way of participating in the copper rally may want to think twice. Over the past 90 days, ECH has traded slightly lower while COPX is up more than 16%.
COPX Relative Strength vs. S&P 500
Chart Courtesy: Captain John Charts