The ASX-traded WIRE ETF aims to track the performance of the Solactive Global Copper Miners Index. Its five largest holdings are currently First Quantum Minerals 5.8%, Lundin Mining Corp, 5.3%, Freeport-McMoran 5.1%, Hudbay 4.7%, and Sumitomo 4.7%. From a geographical perspective, its exposure includes 37.5% in Canada, 12% in Australia, 9.7% in the US and 9% in China – a solid global exposure. Its tracking of its index has been solid short term, having gained 19.45% while its index advanced 20.7%, but longer term, its average, being unhedged to a basket of overseas companies.
This is an excellent vehicle for gaining exposure to a basket of global copper miners at a cost of 0.65% per annum, but an ideal risk/reward entry is hard above $14.
- We like the WIRE ETF initially targeting a test of $16, over 10% higher.
MM is bullish on the WIRE ETF medium-term
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