U.S. markets close in 4 hours 25 minutes
  • S&P 500

    4,159.68
    +35.02 (+0.85%)
     
  • Dow 30

    33,991.03
    +260.14 (+0.77%)
     
  • Nasdaq

    13,994.83
    +136.99 (+0.99%)
     
  • Russell 2000

    2,245.14
    -2.58 (-0.11%)
     
  • Crude Oil

    63.02
    -0.13 (-0.21%)
     
  • Gold

    1,767.00
    +30.70 (+1.77%)
     
  • Silver

    26.01
    +0.49 (+1.92%)
     
  • EUR/USD

    1.1963
    -0.0020 (-0.17%)
     
  • 10-Yr Bond

    1.5570
    -0.0810 (-4.95%)
     
  • GBP/USD

    1.3785
    +0.0004 (+0.03%)
     
  • USD/JPY

    108.7660
    -0.1610 (-0.15%)
     
  • BTC-USD

    62,742.11
    -789.00 (-1.24%)
     
  • CMC Crypto 200

    1,376.51
    -4.43 (-0.32%)
     
  • FTSE 100

    6,987.91
    +48.33 (+0.70%)
     
  • Nikkei 225

    29,642.69
    +21.70 (+0.07%)
     

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

Zacks Equity Research

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