Copper prices have been rising this year, partly due to strong economic conditions in China, which is a strong source of copper demand. At more than $10,000, copper prices are around their all-time highs. Year to date, they are up approximately 20% and in five years, they have climbed by 80%.
For investors who want exposure to copper, there are multiple exchange traded funds (ETFs) which could set you up for some promising returns. The Global X Copper Miners ETF (NYSE Arca: COPX) invests in copper mining companies, which should enjoy strong results this year due to rising prices. There are 40 holdings in the fund and there’s also broad geographical diversification with Canadian and U.S. stocks accounting for less than 50% of the fund’s weight.
The fund has an expense ratio of 0.65% which is a bit high for an ETF but with potentially promising performances by copper mining stocks, it may prove to be worth the price. Year to date, the ETF is up around 30% as it has been rallying right along with copper prices. And over the past five years, the fund has increased by more than 160%.
Whether you want some diversification or are bullish on copper prices, the Global X Copper Miners ETF could make for a good investment to add to your portfolio today. Many of these stocks are not as well known to investors and through the ETF, you can get exposure to many top copper mining stocks without having to do the research yourself.
