Cautious on Copper


Another beneficiary of rising copper prices is the iShares MSCI Chile Capped ETF (NYSEArca: ECH). ECH, the lone ETF dedicated to tracking equities in the world’s largest copper-producing country. Although Chile is viewed by some market observers as the most advanced and open South American economy and it is undeniably home to Latin America’s highest sovereign credit rating (AA-), there is also no denying the country’s dependence on copper exports as a driver of government revenue. [A Chilly View on the Chile ETF]

“Global copper-mine production grew 4.1% year over year in 2015, and in January, Peru’s output grew 44% from the same month in 2015, fueled by a production surge of 23% year over year in two of the country’s mines. Peru is the third-largest copper producer after Chile and China,” adds Barron’s.

iPath Dow Jones-UBS Copper Subindex Total Return ETN