U.S. Markets close in 3 hrs 17 mins
  • S&P 500

    3,901.10
    -22.58 (-0.58%)
     
  • Dow 30

    31,173.50
    -316.57 (-1.01%)
     
  • Nasdaq

    11,435.81
    +17.65 (+0.15%)
     
  • Russell 2000

    1,785.39
    +10.54 (+0.59%)
     
  • Crude Oil

    110.17
    +0.58 (+0.53%)
     
  • Gold

    1,841.60
    +25.70 (+1.42%)
     
  • Silver

    21.88
    +0.34 (+1.56%)
     
  • EUR/USD

    1.0590
    +0.0124 (+1.1861%)
     
  • 10-Yr Bond

    2.8350
    -0.0510 (-1.77%)
     
  • Vix

    30.18
    -0.78 (-2.52%)
     
  • GBP/USD

    1.2493
    +0.0151 (+1.2256%)
     
  • USD/JPY

    127.5440
    -0.7530 (-0.5869%)
     
  • BTC-USD

    30,176.93
    +1,142.84 (+3.94%)
     
  • CMC Crypto 200

    671.80
    +19.56 (+3.00%)
     
  • FTSE 100

    7,302.74
    -135.35 (-1.82%)
     
  • Nikkei 225

    26,402.84
    -508.36 (-1.89%)
     

Copper Miners ETF (COPX) Hits New 52-Week Low

For investors interested in finding out the painful areas of investing, Global X Copper Miners ETF (COPX) is probably on radar now. The fund just hit a 52-week low, and shares of COPX are down roughly 55% from their 52-week high price of $24.78/share.

Are more pains in store for this ETF? Let’s take a quick look at the fund and its near-term outlook to get a better idea of where it might be headed:

COPX in Focus

COPX looks to track the performance of the copper mining market. The fund focuses on small caps followed by mid caps. COPX charges investors 65 basis points a year in fees and has top holdings in CST Mining Group, OZ Minerals and Copper Mountain Mining Co (see all Materials ETFs here).

Why the Move?

Copper prices slipped to a six-year low on growth concerns. A weak Chinese economy has been a concern for the fund for long. China matters the most for this metal as the country is the world’s biggest consumer of this industrial metal, making up roughly 40% of global copper demand. This along with the looming Fed lift-off bet which strengthened the greenback wrecked havoc on the overall commodity investing, including copper. Notably, mining ETFs generally trade as a leveraged play on the underlying metal and thus see higher changes in prices, either way.

More Pains Ahead?

The fund has a negative weighted alpha of 56.62. A negative weighted alpha hints at more pain.

So, it is wise to flee the space at the current level as a broad-based commodity market sell-off may be seen in the coming days after the Fed implements a short-term rate hike. Things will likely take some more time to stabilize.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
GLBL-X COPPER (COPX): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report