TRENDLY IDEA: STOXX GLOBAL COPPER MINERS INDEX

The STOXX Global Copper Miners Index provides exposure to companies around the globe with significant exposure to copper mining industry either through revenue percentage or market share. Copper miners typically offer an attractive dividend yield and high sensitivity to the copper price, making them a liquid and tradeable proxy candidate for direct copper commodity exposure and building inflation-resilient portfolios.

1. Demand Surge: Copper plays a critical role in low-carbon technologies, such as electric vehicles and in traditional infrastructure such as telecom wiring or plumbing. Consequently, the world is witnessing a demand surge. Overall, global demand for copper is expected to double over the next decade, from 25m tons today to almost 50m tons by 2035.¹
2. Supply crunch: The world would need a 54% larger supply of copper by 2030 should policy continue to converge on a net-zero emissions path, with an estimated 198 million metric tons of cumulative demand for copper by 2050 –equivalent to the last 10 years’ aggregate copper mine supply.²
3. Strategic priority: Around the world, increased environmental legislation and ambitious targets regarding greenhouse gas emissions are pushing the demand and deployment of low-carbon technologies, reinforcing the role of copper. While supply is highly concentrated, governments are taking action to secure the supply of this strategic metal.