Copper needs a China rally

Article Excerpt

GLOBAL X COPPER MINERS ETF $16.78, is a hold. The ETF (New York symbol COPX; buy or sell through brokers; www.globalxfunds.com) lets you track the Solactive Global Copper Miners Index, which includes 27 global mining and exploration firms. It started up in April 2010. Canadian firms make up 31.5% of the ETF’s holdings. They also include companies based in China (10.7%), Australia (10.4%), the U.K. (6.8%) and the U.S. (5.5%). The fund charges investors an acceptable 0.65% MER. The ETF’s top holdings include Polska Miedz SA, 5.1%; Southern Copper, 5.1%; Ivanhoe Mines, 5.0%; Kaz Minerals, 4.9%; First Quantum 4.9%; Grupo Mexico SAB, 4.9%; Freeport-McMoRan, 4.8%; Teck Resources, 4.8%; Glencore plc, 4.7%; and Vedanta Ltd., 4.6%. Investors benefited from copper’s rise to $3.28 U.S. a pound in June 2018, but it has since fallen to $2.48. That drop reflects fears about the ongoing coronavirus economic slowdown for China; that country is responsible for almost 50% of global use. use. …