I tested Elon's AI against ChatGPT…one tech won
Key Points
- Commodities are outperforming the S&P 500 this year as investors rotate from tech to safe havens amid geopolitical unrest and ongoing market uncertainty.
- Despite a recent dip in price, copper—which is facing a supply shortage—remains essential for AI data centers and green energy.
- Following a 20% correction, the Global X Copper Miners ETF offers a buy-the-dip opportunity that provides diversified global exposure to major miners with strong institutional backing.
- Special Report: MAJOR BUY ALERT: Mar-a-Lago/Trump/Elon
When all is said and done, 2026 might go down in market history as the year of commodities.
Broadly, prices for raw materials have outperformed the S&P 500 while continuing to dominate the news cycle amid a market rotation that’s seen the benchmark index lose more than 2% this year.
Most recently, oil and gas prices have stolen the spotlight following the onset of war between the United States, Israel, and Iran. But metals—and precious metals in particular—are having a moment.
Gold, silver, and platinum each set all-time highs in January amid a backdrop of geopolitical unrest, equity market uncertainty, and a flight to safety following a mass exodus from AI- and software-leveraged tech stocks.
But precious metals aren’t the only metals hitting record highs. This year, one major and often overlooked industrial metal also reached its all-time high: copper.
Since reaching its record high in January, copper prices have corrected. But with signs that they have likely bottomed, investors looking to get exposure for the next leg up can turn to one exchange-traded fund (ETF) that provides exposure via a basket of stocks that call the materials sector home: the Global X Copper Miners ETF (NYSEARCA: COPX).
Our investment research analysts are going to be releasing their next investment idea tomorrow morning, around 10:00 AM Eastern time.
Add yourself to the distribution list here.
Global Supply Squeeze Reinforces Copper’s Price Narrative
Shortages caused by notable supply disruptions at major mines around the globe have significantly tightened the copper market. But demand for the metal is simply not going away.
Fueling that demand is copper’s properties, which make it a critical conductor and, by extension, the most commonly used metal for electrical wiring and electronics. With the highest electrical conductivity of all industrial metals—second only to silver—copper is essential to electrification, renewable energy, AI and data center expansion, and industrial growth (e.g, construction, consumer electronics, and machinery).
Beyond its high conductivity, copper is a cost-effective metal known for its superior pliability, durability, and corrosion resistance. Together, those properties are driving a global market that was valued at nearly $242 billion in 2024 and is projected to undergo a compound annual growth rate of 6.5% through 2030, when it reaches nearly $340 billion, according to industry analysis firm Grand View Research.
As an essential component in everything from photovoltaic solar panels and wind turbines to telecommunications, plumbing, and automotive parts, here is an ETF that can help add copper to your portfolio.
After a Sharp Pullback, COPX Is a Buy-the-Dip Opportunity
Since hitting its all-time high on Feb. 27, roughly one month after copper did the same, COPX corrected to the tune of 20%.
But the largest and most liquid copper-themed ETF—with nearly $7 billion in assets under management and average daily trading volume of almost 6 million shares—appears to have already found a short-term bottom, having regained around 3% since March 13.
COPX seeks to provide investment results that track the price and yield performance of the Solactive Global Copper Miners Index, which in turn seeks to reflect the performance of the copper mining industry as a whole.
Over the past year, that has rewarded shareholders with a gain of more than 86%, which has been supplemented by a dividend that currently yields 2.44%, or $1.92 per share annually.
That yield is more than enough to offset the COPX’s net expense ratio of 0.65%, which could be considered somewhat high for a passively managed ETF, but those fees are certainly not eroding investors’ gains, which cumulatively have exceeded 117% over the past five years.
Elon Musk's AI Everywhere project isn't inside Tesla—it's a private venture with a global network of 150+ facilities embedding autonomous AI into devices everywhere, and Musk believes this could propel Tesla to become the most valuable company ever, worth more than Apple, Microsoft, Nvidia, Amazon, and Google combined. Private ventures like this are usually locked for elites, but I've found a legitimate brokerage backdoor under $100 with no special requirements, just a regular account, and this private play follows the same playbook as PayPal, SpaceX, Tesla, and xAI using Tesla's proven autonomous AI copy-pasted across the world.
See the 3 steps to profit before the summer regulatory shift
Institutional Buyers Are Bullish on COPX’s Basket of Copper Miners
Despite its recent correction, the fund still remains favored among institutional owners, with 222 buyers outnumbering 75 sellers over the past 12 months, resulting in inflows of nearly $17 billion versus just over $196 million in outflows.
Much of that can be attributed to the performances of the COPX’s roughly 47 individual holdings, which include mega-cap miners like Southern Copper (NYSE: SCCO) and Freeport-McMoRan (NYSE: FCX), which have seen nearly 20% and 12% year-to-date gains in addition to nearly 88% and 47% one-year gains.
Another benefit that the ETF offers investors is its global diversification. Nearly 32% of its holdings are based in Canada, while companies operating in the United States, Japan, Australia, and China round out the top five geographic regions, accounting for 10.6%, 9.1%, 7.8%, and 7.2% of the portfolio, respectively.
Still, the recent rally in copper prices has resulted in increased short interest for the fund, which currently stands at 5.42% of the float, or 4.5 million shares of the early 84 million shares outstanding. But short interest serves as a short-term sentiment indicator, and given copper’s macro tailwinds, the fund is likely to continue outperforming this year amid a backdrop of rallying commodities.
Read this article online ›
The best investment opportunities don't wait. Get our research and stock ideas delivered straight to your smartphone—so you never miss a market-moving opportunity. Our text alerts ensure you see timely stock ideas and professional research reports instantly, whether you're in a meeting, commuting, or away from your desk.
Get Text Alerts from American Market News (free)
0 Response to "Copper Cools After Record January—But This ETF Is a Buy-the-Dip Opportunity"
Post a Comment