ETFS Global Pure Play Copper Miners ETF (ASX: CPPR)
What are your thoughts on the relatively new CPPR as an alternative way to get exposure to copper? Thanks
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Answer
Hi Ian,
The ETFS Global Pure Play Copper Miners ETF (ASX: CPPR) is a newly listed (April 26) pure play Copper ETF on the ASX. Market cap currently sits at $3.5mn.
There are a few main differences that make this ETF interesting/attractive vs the well known and used WIRE ETF.
- CPPR is more targeted. It holds companies with significant revenue from copper mining activities, not just companies with some exposure.
- WIRE provides copper miner exposure, but its top holdings include BHP and Glencore, which are high-quality miners but not pure copper plays. BHP is a major copper producer, but it also has huge iron ore exposure; Glencore has copper, but also coal, zinc, trading and other commodities
- CPPR uses an equal-weight index, which means it is less dominated by the mega-cap diversified miners. Its top holdings are around 3.5% to 4.4% each
- WIRE uses a market cap index, so it’s portfolio is naturally skewed to the large caps.
- CPPR is cheaper at 0.39% (vs WIRE at 0.65%) and we think it addresses one of the floors that we’ve written about in the past with the WIRE, namely that you get a lot more than just Copper when you hold it.
MM is very bullish on copper over the coming years and see no issues with the newly listed CPPR. It is probably the cleaner copper thematic exposure and is cheaper on headline fees, but it is brand new and tiny. WIRE is less “pure” because of exposure to diversified miners, but it is more established, much larger, and likely more practical for sizeable positions.
- We can see CPPR being a better alternative once we see more of a track record and size increases.
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ETFS Global Pure Play Copper Miners ETF (CPPR)
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ETFS Global Pure Play Copper Miners ETF (CPPR)
