Content and data provided by various third parties and Fidelity − Terms of Use | Help/Glossary
Research > ETFs > ETF / ETP Commentary > 

China's Stimulus Will Continue to Weigh Heavy on Copper

BY | ETF Database
10/17/2024 | 152 VIEWS
Increased price volatility in copper prices could ensue as China continues to implement stimulus measures to boost growth. Whether it is or isn’t enough will weigh heavy on copper prices moving forward.Investor sentiment, as capital markets are well aware, can change quickly. While investors cheered the latest round of stimulus measures by China to prop up its economy, the lack of additional stimulus may have soured sentiment. Given that China is a top consumer of copper, its demand will continue to sway prices. “The market reaction speaks for itself, with investors disappointed by a lack of clarity over more forceful action as the NDRC continued to voice confidence in the economy. With investor expectations running high into the NDRC press conference, the outcome represents a setback for those anticipating additional swift action from Beijing,” said analysts at UBS, who predicted more volatility in China stocks, which could spill over into copper prices. “We see limited chance of meaningful demand stimulus near term, specifically one that is geared towards consumers. Foreign investors could take a ‘not trust but verify’ approach, evaluating Beijing’s commitment on reflation,” added Morgan Stanley’s China economics team led by Robin Xing.2 Trade Opportunities to WatchThe ebb and flow of copper prices can also affect the demand for miners. As such, any recent dips in copper miners could open opportunities to buy equities at a value-oriented price. On that note, Sprott has a pair of copper mining funds to consider. One is the Sprott Copper Miners ETF (COPP B-), which tracks the Nasdaq Sprott Copper Miners Index (NSCOPP). The index tracks the performance of a selection of global securities in the industry. This includes producers, developers, and explorers that support the industry. Overall, COPP provides blanket exposure to this mining industry, focusing on large-, mid-, and small-cap mining companies. Investors who want an even stronger growth trajectory, small-cap companies can also offer additional potential when the copper skews toward the upside. Again, investors can look to copper miners to help appease rising demand, but with a focus on small-caps. With that, consider the Sprott Junior Copper Miners ETF (COPJ B-). COPJ is ideal for investors who want to focus on even more aggressive growth prospects with small-cap exposure. The fund aims to provide investment results that track the total return performance of the Nasdaq Sprott Junior Copper Miners Index. The index incorporates mid-, small-, and micro-cap companies entrenched in copper-mining-related businesses. For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Channel. Past performance is no guarantee of future results. One cannot invest directly in an index. For the latest standardized performance and important risk disclosures regarding Sprott investment products, including each fund’s prospectus, which should be read carefully before investing, please review each product’s webpage by clicking on the corresponding ticker: Exchange Traded Funds (ETFs):  SETM, LITP, URNM, URNJ, COPP, COPJ, NIKL, SGDM and SGDJ Physical Bullion:  PHYS , PSLV , CEF and SPPP Physical Commodity: U.UN COP.UN Public Equity:  SGDLX and FUND For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Channel.

More Commentary

Active ETFs Offer Tax Perks, Too
BY | ETF Database
11/21/2024 | 70 VIEWS
Sell on the Pop Prospects: November 20 Edition
BY | ETF Database
11/20/2024 | 36 VIEWS
The Case for Active Investing in 2025
BY | ETF Database
11/20/2024 | 70 VIEWS
View more Commentary

Search Commentary

Enter Keyword(s)
Filter Results

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.

Copyright 1998–2024 FMR LLC. 
All rights reserved.