Global X Copper Miners ETF NEW

COPX

Market cap $3.4B

From tightening supply to rate-cut tailwinds and a falling dollar, everything is lining up in copper's favor. Here's why ETFs tied to the red metal may benefit.

Copper futures are up 26% so far in 2025. Copper mining stocks are rising more rapidly due to the anticipation of greater demand.

Wall Street excels at creating catch phrases. The latest one is the “debasement trade.

It's not exactly a gold rush, but copper is quietly up about 27% in 2025. That's not even close to the runup in gold or silver, but it's still notable.

Copper prices are on the rise due to supply issues, primarily stemming from a production stoppage at the Grasberg mine in Indonesia, one of the world's largest copper producers.

The Global X Copper Miners ETF offers diversified exposure to global copper mining equities, which tracks the Solactive Global Copper Miners Total Return Index. COPX's performance is highly correlated with copper prices, which are heavily influenced by Chinese industrial demand and global economic trends. COPX is the largest and most liquid copper miners ETF, with a 1.51% yield and a 0.65% expense ratio.

Copper's long-term bull market remains intact, driven by electrification, grid upgrades, and surging AI/data center demand despite recent U.S. tariffs. The 50% U.S. copper import tariff creates short-term volatility and market fragmentation, but does not address the core supply-demand imbalance. COPX, as a diversified copper miner ETF, is well-positioned to benefit from rising copper prices and operational leverage, despite near-term risks.

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.

Possible US copper import tariffs might not impact copper prices and the share prices of copper producers in the way many investors expect. US copper markets have been preparing for tariffs by adding to inventories and stockpiles, which may limit a price surge if tariffs are announced. A restriction of US copper scrap exports could wind up reducing global smelting capacity and copper demand.

Copper is red-hot, and so are ETFs that track the industrial metal.