For investors seeking momentum, Global X Copper Miners ETF (COPX - Free Report) is probably on radar now. The fund just hit a 52-week high and is up over 120% from its 52-week low price of $8.66/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
COPX in Focus
This product offers exposure to the copper mining industry. The fund charges 65 bps in fees (see all Materials ETFs here).
Why the Move?
Copper prices are rising on improving fundamentals in the Chinese economy as the country is the world’s biggest consumer of this industrial metal, accounting for roughly 40% of global copper demand. Notably, China's manufacturing PMI expanded at the quickest clip in over two years in October. Plus, readings of several big economies’ manufacturing activities came in favorable in recent times pushing up demand for copper, which has extensive industrial usage.
More Gains Ahead?
It seems that COPX might continue with its strength given a positive weighted alpha of 52.52. A positive weighted alpha hints at more gains.
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