Global X launches Copper Miners ETF

Oksana Patron

24 November 2022

Global X ETFs Australia has announced the launch of the Global X Copper Miners ETF (WIRE) which will provide access to a global basket of copper miners, which benefits from being a key part of the value chain supporting growth in significant areas of innovation such as technology, infrastructure, and clean energy.

The fund would track the Solactive Global Copper Miners Total Return Index, which is designed to track the performance of companies that have or are expected to have significant exposure to the copper mining industry.

Blair Hannon, head of investment strategy, said copper was one of the world’s most versatile commodities and would remain a vital input for a multitude of future-focused industries thanks to its properties as an electricity and heat conductor and its corrosion resistance.

“The global transition to renewable energy and EVs will require a lot of copper. Demand for copper has increased by 28% over the last decade, which has been driven by major infrastructure developments across the globe in countries such as India, China and the United States,” Hannon said.

“Copper demand is highly correlated with global economic activity and is often seen as a leading barometer for global economic health because when activity picks up, prices tend to rise. Covid-related disruptions did see copper prices fall due to slowed global economic activity, but it’s been one of the best-performing assets in the post-pandemic recovery, with prices this year increasing by 2.4%.”

“The investment opportunity for Australian investors is to use WIRE in a portfolio as an indirect exposure to the price moves of copper as global economic activity continues to recover,” Hannon says.

The firm said WIRE would be the second ETF launched by Global X ETFs Australia since it rebranded from ETF Securities in September 2022.