The iShares Copper Miners UCITS ETF (COPM) tracks the STOXX Global Copper Miners index, which provides exposure to firms with significant exposure to the copper mining industry.
This is either through their revenue percentage, or because they are in the top 50% of, or are leaders in, market share of the copper ore mining industry, as measured by the index provider.
The firm stated that copper miners stand to benefit from the net zero transition, given the metal’s key role in electrification across renewable energy, electric vehicles and infrastructure buildout.
While demand is expected to grow rapidly, constraints to supply growth could prove an attractive backdrop for copper miners, it explained.
Copper miners offer an attractive dividend yield and high sensitivity to the copper price, it added, making them a liquid and tradable proxy candidate for direct copper commodity exposure, and for building inflation resilient portfolios.
The Article 6 fund has a total exchange ratio of 0.55%.
Omar Moufti, thematic and sector product specialist at BlackRock, said: “Clients are becoming more intentional in their climate transition investment ambitions and exposure to copper miners allows them to tap into themes in electrification, such as electric vehicles, renewable power, and infrastructure expansion.
“Clean technology costs continue to decline with increased deployment. And our analysis of the pathways for a transition to a low-carbon economy show a need for increased investment in new copper mine capacity to accommodate continued growth.”
