In its most significant revamping since 2018, the US Geological Survey (USGS) is updating the critical minerals list to include silver and copper. The 2025 iteration has 54 mineral commodities; 50 were added based on an economics effects assessment.
That assessment includes a comprehensive supply chain disruption model. It looks at over 1,200 trade disruption scenarios for 84 mineral commodities and their effects on various industries as well as the U.S. economy in general. The assessment then weights the economic impacts according to the probabilistic occurrence of a supply chain disruption for a particular mineral. In the end, copper finds itself among those mentioned in the draft list.
“The draft 2025 list and methodology reflect USGS advances in forecasting potential mineral supply chain disruptions, as called for in the Energy Act of 2020,” said Sarah Ryker, acting director of the USGS. “Minerals-based industries contributed over $4 trillion to the U.S. economy in 2024, and with this methodology we can pinpoint which industries may feel the greatest impacts of supply disruptions and understand where strategic domestic investments or international trade relationships may help mitigate risk to individual supply chains. This is a next generation risk assessment that can be used to prioritize securing the nation’s mineral supply chains.”
Silver and Copper Funds to Consider
Global electrification underscores the importance of silver and copper given their conductivity properties. In a world where electricity will be necessary to power an infrastructure more reliant on information technology, a supply disruption in both metals could create an abundance of issues. This also heightens awareness on the investment cases for both silver and copper.
For silver, the Sprott Silver Miners & Physical Silver ETF (SLVR) may be an ideal option. SLVR tracks the performance of the Nasdaq Sprott Silver Miner Index. It provides exposure to companies that support the industry: producers, developers, and explorers. SLVR also includes exposure to physical silver, offering a broad, diversified option.
Likewise, an ideal growth opportunity exists in the Sprott Copper Miners ETF (COPP). The fund tracks the Nasdaq Sprott Copper Miners Index. It allows exposure to mostly large and mid-cap companies domiciled across various countries for added diversification.
Alongside copper mining exposure, COPP also includes physical copper in the fund, which can track spot prices of copper more closely. The mining/physical copper combination gives COPP and its investors pure-play exposure to the industrial metal.
Broad Exposure to Critical Minerals
Those looking for a broad play as opposed to targeted exposure can choose the Sprott Critical Materials ETF (SETM). Per its fund description, SETM seeks to provide results corresponding to the total return performance of the Nasdaq Sprott Critical Materials Index. That index includes global constituents positioned to capture growth in the energy transition materials industry.
The fund is deeply diversified with almost 90 holdings as of July 31. Additionally, holdings mostly revolve around miners operating in the production of uranium, lithium, copper, nickel, silver, manganese, cobalt, graphite, and other rare earth elements.
It also offers global diversification regarding country exposure to critical minerals. The fund represents Canada, the United States, Australia, and Chile, among others. Moreover, there’s also diversification in market capitalization as its assets are spread among large-, mid-, and small-cap companies to offer a balanced market-cap blend.
For more news, information, and analysis, visit the Gold/Silver/Critical Materials Content Hub.
Disclosures
The Nasdaq Sprott Silver Miners Index tracks the performance of companies involved in silver production, exploration, and physical silver holdings. The Nasdaq Sprott Copper Miners Index tracks global companies engaged in copper production, exploration, and physical copper holdings. The Nasdaq Sprott Critical Materials Index tracks companies mining essential materials such as uranium, lithium, copper, and rare earths.
One cannot invest directly in an index.
An investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Prospectus, which contains this and other information, contact your financial professional or call 888.622.1813. Read the Prospectus carefully before investing, which can also be found by clicking one of the links below.
Past performance is no guarantee of future results. One cannot invest directly in an index.
Diversification does not guarantee profits or protect against losses in declining markets.
Funds that emphasize investments in small/mid-cap companies will generally experience greater price volatility. Diversification does not eliminate the risk of investment losses. ETFs are considered to have continuous liquidity because they allow an individual to trade throughout the day. A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses, affect the Fund’s performance.
Sprott Asset Management USA, Inc. is the Investment Adviser to the ETFs. ALPS Distributors, Inc. is the Distributor for the ETFs and is a registered broker-dealer and FINRA Member. ALPS Distributors, Inc. is not affiliated with Sprott Asset Management USA, Inc. or VettaFi.
Exchange Traded Funds (ETFs): SETM, LITP, URNM, URN, COPP, COPJ, NIKL, SGDM and SGDJ
Physical Bullion Funds: PHYS, PSLV, CEF, and SPPP.
