More gains ahead for base-metal ETFs

Article Excerpt

Base metals are highly cyclical commodities, closely tied to global economic growth. Copper, iron, zinc, nickel and aluminum are widely used in manufacturing and infrastructure development. In turn, those projects rely on steady global economic expansion. The $1 trillion that the Trump administration proposes for infrastructure spending should boost demand for copper and other base metals. Here are two ETFs focused on base-metal producers, refiners and distributors: GLOBAL X COPPER MINERS ETF $29 (New York symbol COPX; TSINetwork ETF Rating: Aggressive; Market cap: $76.4 million) invests in a broad range of companies largely focused on copper mining. The fund holds a portfolio of 35 stocks and invests globally. Its main country exposure is Canada (31%), Australia (12%), India (9%), China (8%), Switzerland (5%) and Chile (5%). The ETF’s top holdings account for 48% of its portfolio. The top 10 are Freeport-McMoran (U.S., 5.8%), First Quantum Minerals (Canada, 5.4%), Tech Resources (5.3%), Southern Copper Corp. (U.S., 5.1%), Hudbay Minerals (Canada, 5.1%), Glencore (Switzerland,…