U.S. Energy Independence Directs Tailwinds to Copper Miners

As reported by Stockhead, one of the points of contention in the ongoing U.S./China trade war is critical minerals. These are essential for the next wave of alternative energy technologies as the push to reduce global emissions reaches a higher amplitude.

With the U.S. looking to rely less on other nations for copper supply, the revival of copper mining projects is one area of focus. Executive orders under President Trump are already underway, exploring the impact of tariffs on copper supplies and an increase in mineral production (namely copper).

“The March 20 executive order is just one of about four or five that have come out in relation to critical minerals and securing the US’ energy dominance again,” said New World CEO Nick Woolrych.

“Copper is a huge focus. Resolution is an industry changing project if that gets up, but I think for New World the main difference we have is we’ll be producing critical minerals which are copper and zinc and a priority mineral – gold – actually during this presidential term,” he said,

With tailwinds blowing behind copper miners, it offers an opportunity for investors to get exposure to copper mining ETFs. With that in mind, Sprott has a pair of funds that are worth of consideration: the Sprott Copper Miners ETF (COPP) and the Sprott Junior Copper Miners ETF (COPJ).

COPP provides investors with exposure to all market cap sizes, offering the most diversification between the pair. On the other hand, COPJ focuses squarely on small-cap, microcap, and midcap companies, offering the greater growth potential albeit higher risk.

COPP specifically tracks the Nasdaq Sprott Copper Miners Index (NSCOPP). That index includes producers, developers, and explorers that support the copper mining industry. For diversification, COPP provides blanket exposure by focusing on large-, mid-, and small-cap mining companies.

As mentioned, COPJ is ideal for those who aren’t averse to the risks associated with smaller-cap companies. And, Small-cap and microcap companies can offer investors higher potential for growth albeit greater volatility. Midcap companies can offset that exposure by offering a mix of large-cap characteristics with a tinge of growth from small-cap equities. COPJ aims to track the total return performance of the Nasdaq Sprott Junior Copper Miners Index. This index aims to track the performance of mid-, small-, and micro-cap companies in copper mining-related businesses.

For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Channel.

An investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Prospectus, which contains this and other information, contact your financial professional or call 888.622.1813. Read the Prospectus carefully before investing, which can also be found by clicking one of the links below.

Past performance is no guarantee of future results. One cannot invest directly in an index.

Funds that emphasize investments in small/mid-cap companies will generally experience greater price volatility. Diversification does not eliminate the risk of investment losses. ETFs are considered to have continuous liquidity because they allow an individual to trade throughout the day. A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses, affect the Fund’s performance.

Sprott Asset Management USA, Inc. is the Investment Adviser to the ETFs. ALPS Distributors, Inc. is the Distributor for the ETFs and is a registered broker-dealer and FINRA Member. ALPS Distributors, Inc. is not affiliated with Sprott Asset Management USA, Inc. or VettaFi.

Exchange Traded Funds (ETFs): GBUG, SLVR, SETM, LITP, URNM, URNJ, COPP, COPJ, NIKL, SGDM and SGDJ

Physical Bullion Funds: PHYS, PSLV, CEF, and SPPP