We’ve selected the OZR ETF as it currently carries the lowest energy weighting of its peers, i.e. less than 13%. As is common with the cyclical resources space, this can be a volatile ETF, but we remain bullish into 2027, especially towards copper, which is a dominant influence on the OZR, with BHP and RIO making up over 45% of its holdings at this stage. While we would simply prefer buying BHP into a steep pullback, for ETF-focused members, the OZR makes sense to us, although it’s not cheap (0.34%) considering it holds simple ASX miners.
NB: The resources trade, especially copper, is a fairly crowded space at the moment; hence a sharp 8-10% pullback cannot be ruled out.
- We would find the risk/reward towards OZR attractive in the $16.50 region – a decline which would be the ETF’s 3rd 15-20% pullback of 2026.
MM is neutral towards the OZR around $18.50
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