Sprott Junior Copper Miners ETF

COPJ

Market cap $27.2M

COPJ surges to a 52-week high, fueled by copper price gains and optimism over U.S. rate cuts boosting the metal's outlook.

Copper capped off a strong August despite tariff headwinds blowing in its direction. Physical copper prices rose in tandem with copper mining equities, which created opportunities for investors to obtain exposure via ETFs.

The Federal Reserve's recent rate cut of 25 basis points could amplify gold's current rally. Prices have already broken through the $3,700 price mark, and another record high could hinge upon how aggressive rate cuts will be in the coming months.

The prospect of interest rate cuts this month and through the rest of the year is elevating prices for gold, but silver is also benefiting. The precious/industrial metal crossed the $40 price mark in the first week of September, which it hasn't done since 2011.

As acceptance for nuclear energy usage becomes more widespread globally, the infrastructure in which it operates is also evolving. The United States, for example, is looking towards smaller, more efficient reactors that require higher uranium enrichment.

Despite tariff contagion upending prices at the tail end of July, copper continues to push higher ahead of its industrial metal peers as seen in its S&P indexes. This performance comes as copper is under consideration as a critical mineral by the US Geological Survey (USGS).

When it comes to the world's biggest, Chilean company Antofagasta is on the list of largest copper producers in the world. It recently reported record profits, creating opportunities in copper exchange-traded funds (ETFs) that track the industrial metal.

Central banks' willingness to buy more precious metals should help buoy prices for both gold and silver. Around the globe, central banks continue to quench their thirst for both, providing investment opportunities in ETFs with exposure to both metals.

Copper ETFs have seen a surge in investor popularity, driven by geopolitical tensions and recent tariff-related news. President Trump declared a 50% tariff on copper.

Copper prices continue to exhibit upside. And that is providing investors with opportunities for exposure to the Sprott Copper Miners ETF (COPP).