Time to revisit ETF WIRE?

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Question asked 15/06/2024

Time to revisit ETF WIRE?

Good morning James and the MM Team First up, thank you for all your insightful commentary every day, I enjoy reading it. I know you answered a question regarding copper ETF WIRE as a diversified copper play back in April when it was trading around $14.47 and suggested a 'pull-back' was overdue. It has since pulled back (a little) and I wonder if you could offer any further comment on the attractiveness of the risk/reward at current levels. I currently hold Sandfire, but am considering a switch to ASX:WIRE. Thank you as always for your comment.

Answer

Hi Iona,

We like WIRE after its 15% pullback although our preference is to play the thematic through direct equities such as Sandfire Resources (SFR) or Freeport McMoran (FCX US) – MM added to our SFR position in our Active Growth Portfolio last week into sector weakness. The reason we like WIRE less than buying a direct Copper stock is that the WIRE holds more diversified mining companies that give exposure to other things outside copper, for example, Glencore (GLEN LN) & BHP have around a 5% weighting each in the ETF, but they have more exposure to Coal & Iron Ore vs Copper (i.e. about 30% of BHP’s earnings come from Copper).

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Global X Copper ETF (WIRE)

LAST UPDATED 14/06/2024 14:48

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