Sprott Asset Management launches Copper Miners ETF
Sprott Asset Management LP has announced the launch of Sprott Copper Miners ETF [COPP-Nasdaq], the only U.S. listed ETF to provide pure-play exposure to large, mid-and small-cap copper miners that supply a critical mineral necessary for the energy transition.
The ETF is the most recent addition to Sprott’s suite of critical materials-focused ETFs and is Sprott’s second copper mining fund, joining Sprott Junior Copper Miners ETF [COPJ], which launched in February, 2023.
“Global commitments to meet net-zero emissions by 2050 are reliant upon copper-intensive electrification initiatives, such as expanding power grids, building clean energy infrastructure like wind turbines and solar panels, and manufacturing more electric vehicles,’’ said John Ciampaglia, CEO of Sprott Asset Management.
“Despite growing investor interest in copper as the energy transition gains momentum, it’s been challenging for investors to gain targeted exposure to copper miners,’’ he said. “We’re pleased to offer a focused opportunity to invest in copper miners through this ETF.’’
The Sprott Copper Miners ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Nasdaq Sprott Copper Miners Index (NSCOPP). The index is designed to track the performance of a selection of global securities in the copper industry, including copper producers, developers and explorers.
The spot copper price was trading Wednesday at US$3.89 a pound, compared to a year-ago level of US$3.99. On March 23, 2023, the red metal traded as high as US$4.15 a pound.
COPP is part of Sprott’s energy transition ETF suite, which is focused on the investment opportunity of the critical minerals needed to generate, transmit and store cleaner energy. The suite now consists of Sprott Energy Transition Materials ETF [SETM-NASDAQ], Sprott Uranium Minerals ETF [URNM-NYSE Arca], Sprott Junior Uranium Miners ETF [URNJ-NASDAQ], Sprott Copper Miners ETF [COPP], Sprott Junior Copper Miners ETF [COPJ], Sprott Lithium Miners ETF [LITP-NASDAQ], Sprott Nickel Miners ETF [NIKL-NASDAQ].
It also includes Sprott Physical Uranium Trust [U.UN-TSX, U.U-TSX], a Toronto-based vehicle set up to give investors direct exposure to the commodity via its holding of U308, recently said its net asset value has surpassed US$5.0 billion.
Since its inception in July 2021, Sprott Physical’s Net Asset Value (NAV) has grown from US$630 million to more than US$5.0 billion as of November 20, 2023. Over this same period, Sprott Physical’s unit price has increased by more than 100% while its liquidity and trading volumes have steadily improved.
Sprott Asset Management is a wholly-owned subsidiary of Sprott Inc. [SII-TSX], a global leader in precious metals and critical materials investments. Sprott Asset Management is the world’s largest manager of uranium-related investments, with approximately US$7.0 billion of uranium-related assets under management.