DJ Shaw
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Sprott Asset Management will add physical copper to its Sprott Copper Miners ETF (COPP) effective June 23, creating the market's only ETF offering exposure to both physical copper and copper-mining companies, according to a company announcement Wednesday.
The addition of physical copper to COPP gives investors a more complete exposure to the copper market, combining both the metal itself and mining companies at a time when infrastructure spending continues driving demand for the industrial metal.
The change comes through a modification to the ETF's underlying benchmark, the Nasdaq Sprott Copper Miners Index, which already tracks companies focused on copper mining, exploration, development and production, according to the press release from Sprott.
COPP currently holds about $24.1 million in assets under management with a 0.65% expense ratio, according to FactSet data. The fund has attracted roughly $667,000 in net inflows over the past three months and $4.5 million over the past year.
The ETF has posted an 11.9% gain over the past month, though it remains down 5% over the three-month period and 0.8% year-to-date, according to FactSet.
Major holdings currently include Freeport-McMoRan, Inc. (FCX) at 23.6% of the portfolio, Teck Resources Ltd. at 8.7% and Ivanhoe Mines Ltd. at 7.2%.
"This change will make COPP the only ETF to provide exposure to physical copper and the only ETF to provide pure-play exposure to large-, mid- and small-cap copper miners," the company stated in its announcement.
The fund is part of Sprott's family of critical materials and precious metals ETFs, which includes the Sprott Uranium Miners ETF (URNM), the Sprott Junior Uranium Miners ETF (URNJ), the Sprott Gold Miners ETF (SGDM), the Sprott Junior Gold Miners ETF (SGDJ) and the Sprott Silver Miners & Physical Silver ETF (SLVR), according to the company's announcement.
Sprott currently also offers the Sprott Junior Copper Miners ETF (COPJ), which focuses on mid- and small-cap companies in the copper industry, according to the release.
