As the end of 2025 draws closer, investors may want to consider positioning themselves to capture future upside heading into 2026. Copper, in particular, looks intriguing.
A confluence of supply deficits, greater demand for electricity, and other macroeconomic tailwinds support the investment case for the commodity. ETF product manager Jacob White outlined these factors in his latest insights on the industrial metal: Catalyzing Copper: Supply Shocks and Betting Billions.
“As the copper market enters the final months of 2025, the landscape is defined by deepening supply deficits, evolving policy priorities and industry consolidation,” White noted, adding that “years of underinvestment and recurring supply interruptions have left inventories low, amplifying the market’s sensitivity to new shocks.”
Given the potential threats to supply and its importance, copper is up for consideration as a critical mineral. Additionally, the U.S. government has responded in tow, with policy support that will help strengthen domestic supply chains.
“Policy support for domestic mining and critical minerals in the U.S. remains a powerful tailwind, with further interest rate cuts anticipated before year-end and ongoing debates around tariffs and infrastructure approvals adding complexity to the macroeconomic backdrop,” White added.
As White mentioned, interest rate policy will be one of the primary catalysts driving Q4 performance. The U.S. Federal Reserve instituted a second rate cut recently, with more expected to come sooner rather than later.
Rate cuts also create a beneficial macroenvironment for small-cap copper miners. Many small-cap companies rely heavily on financing in order to fund operations. With lower interest rates, this will allow small-cap miners to refinance their existing debt or obtain new loans with lower debt servicing costs.
Small-Cap Miners To Benefit
Small-cap companies can make amplified moves towards the upside, which adds additional growth potential. This could make the Sprott Junior Copper Miners ETF (COPJ ) an ideal play in a rate-cutting environment combined with the potential for copper miners.
The fund tracks the Nasdaq Sprott Junior Copper Miner Index (NSCOP), which includes mid, small- and micro-cap companies in copper-mining related businesses. The addition of mid-cap companies adds market cap diversification, which should help temper some of the volatility that could arise with small- and micro-cap companies. If investors would rather focus on large-cap companies, they can opt for the Sprott Copper Miners ETF (COPP ).
For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Content Hub.
The Nasdaq Sprott Junior Copper Miners Index (NSCOPJ) is a market-capitalization-weighted index designed to track the performance of mid‑, small‑, and micro‑cap companies involved in copper mining—including producers, developers, and explorers.
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Exchange Traded Funds (ETFs): SETM, LITP, URNM, URN, COPP, COPJ, NIKL, SGDM, SGDJ, SLVR, GBUG, METL
Physical Bullion Funds: PHYS, PSLV, CEF, and SPPP.
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