COPX tracks the Solactive Global Copper Miners Index, which gives the ETF substantial global exposure. Over half 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. [Copper Miners ETF Rallies]
Speaking of emerging markets and copper, shares of the iShares MSCI Chile Capped ETF (NYSEArca: ECH), the lone ETF dedicated to tracking equities in the world’s largest copper-producing country, are up more than 4% last month. [Copper Crimps Chile ETF]
That is an encouraging because in 2014, ECH was one of the worst-performing Latin America single-country ETFs due in large part to copper’s tumble. “Copper roughly represents 40% of the country’s export revenue and minerals constitute the majority of the revenue in total,” according to Emerging Equity.
“Should Doc Copper hold at support start pushing higher, could it be sending a message that economic conditions are improving? It is to soon to make that call at this time. Humbly, I do feel Copper would send a concerning global message should it breakdown below these support points,” according to Kimble.
Chart Courtesy: Kimble Charting Solutions