New York-based Global X Funds, an exchange traded fund (ETF) provider announced last week that it launched two new ETF products. These track the performance of both copper and silver mining companies. Investors are currently hot on these due to high demand for the industrial metals and funds providers are reacting.
The first fund, Global X Silver Miners ETF (SIL), tracks SOLGLOSI, the Solactive Global Silver Miners Index. Global X Copper Miners ETF (COPX) tracks SOLGOCO, the Solactive Global Copper Miners Index. Both are now being traded on the Arca platform on the New York Stock Exchange.
Global X Funds is heavily involved in the ETF market, launching the first ETFs with exposure to the Nordic region and Columbia. Chief executive Bruno del Ama stated that the newest ETFs offer targeted exposure to mining companies that deal in both metals. Included in this list are the largest copper producer in the world, Freeport-McMoran Copper & Gold Inc. as well as Fresnillo Plc, a precious metals miner in Mexico in an attempt to capitalize on rising copper prices and silver prices.
In late afternoon trading on their first day on the market, the Copper Miners ETF was trading at $14.67 and the Silver Miners ETF trades were $14.72. The first ETF will compete with a First Trust product that features a 0.70 percent expense ratio. Global X Funds hopes to capitalize on the recent success of both metals and offer investors a profitable place to put their money.
Global X Funds is known for its expanding ETF lineup that focuses on specific industries within emerging market countries. Mr. Del Ama said that it is likely that companies held by the new ETFs will be involved in mining other metals but they must have the largest single portion of operations in mining the metal focused on by the fund. Details were not released regarding what level of accumulated assets would be considered successful.
