As demand for copper continues to rise, Global X ETFs Australia has announced the launch of the Global X Copper Miners ETF on the ASX under the ticker code WIRE.
The new ETF, which is said to be the first of its kind in Australia, provides access to a global collection of copper miners that Global X said are set to benefit from being a key component of the value chain and supporting growth in significant areas of innovation.
“The global transition to renewable energy and EVs will require a lot of copper,” said Global X head of investment strategy Blair Hannon.
“Demand for copper has increased by 28 per cent 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.”
WIRE tracks the Solactive Global Copper Miners Total Return Index, which includes international companies that are active in the exploration, mining or refining of copper.
BHP, OZ Minerals and Glencore are among the top components of the index, according to a recent fact sheet published by Solactive.
Mr Hannon said that copper will remain a vital input for a range of future-focused industries due to its properties as an electricity and heat conductor, and its corrosion resistance.
“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,” he said.
“COVID-19-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 per cent.”
According to Mr Hannon, investors could use the ETF in their portfolios as an indirect exposure to the price moves of copper as global economic activity continues to recover.
WIRE is the second ETF launched by Global X ETFs Australia since it rebranded from ETF Securities in September, following the launch of the Australian-first Global X Green Metal Miners ETF (GMTL) last month.
The ETF provider currently has almost $5 billion in assets under management in Australia across its product offering of more than 20 funds.
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.