Adding to the growing available exchange traded fund (
ETF
) selection,
Global X
, a fund provider more notably known for its line of ETFs targeting
specific industries in emerging markets, will launch two new funds
focused on global copper mining and silver mining companies.
The
Global X Copper Miners ETF (NYSEArca:
COPX
)
and the
Global X Silver Miners ETF (NYSEArca:
SIL
)
both began trading this morning. Global X CEO Bruno del Ama says
that these funds round out the spectrum on which investors can play
metals. On one side is gold, which is almost purely a precious
metal. Silver has uses on both the precious metal and industrial
side, and copper is almost exclusively an industrial metal.
"If you want to play the growth of the economy, silver and
copper are the way to do that," del Ama says. "Industrial
production is increasing and there's demand for industrial-based
metals."
The benefits of commodity funds that hold equities, del Ama
points out, are that they avoid some of the problems associated
with other types of commodity ETFs and may be an alternative for
investors who want to avoid them. Futures-based funds can be
impacted by contango, and the Commodity Futures Trading Commission
(
CFTC
) has been investigating such funds to see if position limits
should be enforced.
The
Global X Copper Miners ETF (NYSEArca:
COPX
)
tries to reflect the performance of the Solactive Global Copper
Miners Index, which is designed to match the performance of the
global copper mining industry. COPX has 30 holdings and has an
expense ratio of 0.65%. [
Why You Should Plug Into the Copper ETF Rally.
]
- Country allocations include: Canada 44%, Britain 14%,
Australia 12%, U.S. 10%, Poland 5%, Mexico 5% and South Africa
1%.
The
Global X Silver Miners ETF (NYSEArca:
SIL
)
tries to reflect the performance of the Solactive Global Silver
Miners Index, which is designed to match the performance of the
global silver mining industry. SIL has 25 holdings and has an
expense ratio of 0.65%. [
Silver ETFs: 5 Reasons It May Be Their Time.
]
- Country allocations include: Canada 58%, Mexico 24%, U.S.
10%, Russia 4% and Peru 4%.
Also forthcoming from Global X are the
Global X Gold Miners ETF
, which will have an expense ratio of 0.59% and the
Global X Platinum Miners ETF
, which will have an expense ratio of 0.65%. Global X hasn't
provided a ticker symbol for either of the proposed funds and
hasn't specified a launch date.
For more information on metals and mining, visit our
metals & mining category
.
Max Chen contributed to this article.