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Global X Copper Miners ETF (COPX $68.40)
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iShares S&P/TSX Energy Transition Materials Index ETF (XETM $66.14)
Q: It appears as if there could be a supply shortfall in copper in 2026 and with critical minerals being in demand do you see XETM as a way to invest in both copper and critical minerals. On the other hand is there stocks that would be a better copper play and other stocks that would be better in the critical mineral area than XETM.
Thanks
Wayne
Thanks
Wayne
5i Research Answer:
It is difficult to compare an ETF with individual stocks. Single companies will have far more upside potential (if one picks correctly) and far more risk (if one picks incorrectly). If an investor is seeking general sector exposure for a theme we would far prefer an ETF over one or two stocks. That being said, XETM is too small right now for serious consideration. We are fine with its set up and holdings, and it is up 70% this year, but we would prefer to see $50M in assets, at least. We would suggest COPX instead today, or simply wait to see how XETM assets grow for a period of time.