iShares Copper and Metals Mining ETF

ICOP

Market cap $96.1M

Copper's bullish trend is supported by technical and fundamental factors, with global deficits expected to persist into the 2030s. U.S. tariffs have caused extreme volatility and a shift of copper inventories from LME to COMEX warehouses, distorting traditional price relationships. Freeport McMoRan shares experienced sharp volatility due to Indonesian production issues, but Citi upgraded FCX on expectations of $12,000 copper in 2026.

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.

As the world hurtles toward an electrified future, the copper market stands at a crossroads.

Look at ETFs to capitalize on the red metal's bullish trend, driven by renewed investor demand and the Fed's interest rate cut.

Copper prices have surged Tuesday, reaching their highest levels in nearly six weeks, according to CNBC. In New York, copper for September delivery briefly touched $4.3065 per pound on Tuesday, the highest since mid-July, before settling at $4.2365, up 0.4% for the day.

Halfway through the year, thematic equity ETFs have exhibited wide levels of dispersion but continue to capture the market's attention heading into the second half of 2024.

Looking at the ETFs with the highest returns YTD, a few thematic standouts have emerged.  As a reminder regarding  long-term investments, thematic investing is cyclical.

Wall Street is on track for its worst month in 2024. The decline has been broad-based.

One of this year's thematic surprises has been the outperformance of copper and copper-themed ETFs. There have been outsized returns ranging from 16% to over 20% YTD.

Copper prices soared to an 11-month high following an agreement by Chinese smelters to cut production. Investors should tap this strong trend with ETFs.