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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.
“Additionally, recent consumption from China seems to be propped up by one sector—the power grid. Other important sources of demand, such as users of copper for air conditioners, motors, and refrigerators, remain slack,” according to Barron’s.
For more information on Copper ETFs, visit our Copper category.
iPath Dow Jones-UBS Copper Subindex Total Return ETN