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Bonus Article from MarketBeat.com Copper Cools After Record January—But This ETF Is a Buy-the-Dip OpportunityAuthor: Jessica Mitacek. Publication Date: 3/22/2026. 
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.
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When all is said and done, 2026 might go down in market history as the year of commodities. Broadly, raw-material prices have outperformed the S&P 500 and continued to dominate the news amid a market rotation that has seen the benchmark index lose more than 2% so far 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 geopolitical unrest, equity-market uncertainty, and a flight to safety after a mass exodus from AI- and software-levered tech stocks. But precious metals aren't the only metals hitting record highs. This year, one often-overlooked industrial metal also reached an all-time high: copper. Since its January peak, copper prices have corrected. With signs they have likely bottomed, investors seeking exposure for the next leg up can consider an exchange-traded fund that gives exposure via a basket of materials-sector stocks: the Global X Copper Miners ETF (NYSEARCA: COPX). Global Supply Squeeze Reinforces Copper's Price Narrative Shortages caused by supply disruptions at major mines around the globe have tightened the copper market. But demand for the metal is unlikely to vanish. Copper's properties make it the most commonly used metal for electrical wiring and electronics. It has the highest electrical conductivity of the major industrial metals—second only to silver—making it essential to electrification, renewable energy, AI and data-center expansion, and industrial growth (e.g., construction, consumer electronics, and machinery). Beyond its conductivity, copper is cost-effective and prized for pliability, durability, and corrosion resistance. Those attributes are driving a global market that was valued at nearly $242 billion in 2024 and is projected to grow at a compound annual rate of 6.5% through 2030, when it approaches $340 billion, according to Grand View Research. As an essential component in everything from photovoltaic solar panels and wind turbines to telecommunications, plumbing, and automotive parts, copper can be added to a portfolio through the ETF below. After a Sharp Pullback, COPX Is a Buy-the-Dip Opportunity Since hitting its all-time high on Feb. 27—about a month after copper peaked—COPX corrected roughly 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 found a short-term bottom, having regained around 3% since March 13. COPX seeks to provide investment results that track the Solactive Global Copper Miners Index, which reflects the performance of the copper-mining industry as a whole. Over the past year, that exposure rewarded shareholders with gains of more than 86%, supplemented by a dividend that currently yields 2.44% (about $1.92 per share annually). That yield more than offsets COPX's net expense ratio of 0.65%—somewhat high for a passive ETF—and those fees have not eroded investors' gains, which total more than 117% over the past five years. Institutional Buyers Are Bullish on COPX's Basket of Copper Miners Despite the recent correction, the fund remains favored among institutional owners, with 222 buyers outnumbering 75 sellers over the past 12 months, producing inflows of nearly $17 billion versus just over $196 million in outflows. Much of that interest reflects the performance of COPX's roughly 47 holdings, which include mega-cap miners like Southern Copper (NYSE: SCCO) and Freeport-McMoRan (NYSE: FCX). Those names have posted roughly 20% and 12% year-to-date gains, and nearly 88% and 47% one-year gains, respectively. The ETF also offers geographic diversification. Nearly 32% of its holdings are based in Canada, while companies in the United States, Japan, Australia, and China account for about 10.6%, 9.1%, 7.8%, and 7.2% of the portfolio, respectively. The recent rally in copper prices has pushed short interest in the fund to 5.42% of the float, or roughly 4.5 million shares out of approximately 84 million shares outstanding. Short interest is a short-term sentiment indicator, and given copper's macro tailwinds, COPX is well positioned to continue outperforming amid this commodities rally. |
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