A surge in copper prices has attracted Australian investors to Global X’s Copper Miners ETF following President Trump’s announcement of a 50 per cent tariff on the commodity. Copper futures soared to record highs on the COMEX, spiking by 17 per cent to reach US$5.90 after the tariff declaration caught financial markets off guard.
Global X investment strategist Justin Lin noted that the sudden tariff imposition is expected to trigger a widespread surge in global copper prices due to an already tight supply landscape facing renewed pressure. This move has led to a significant increase in flows into the WIRE ETF, Australia’s sole listed fund offering exposure to global copper miners, as investors brace for ongoing supply constraints and robust demand.
Investors have been pouring funds into WIRE, anticipating resilient copper demand despite potential economic risks stemming from the tariffs. In the second quarter of 2025, WIRE witnessed the strongest inflows since the lead-up to the US elections in the third quarter of 2024, reaching a total of $23.7 million.
Lin highlighted that accessing global copper miners through an ETF is the best option for local investors, given that most major copper producers are listed on offshore exchanges, offering limited opportunities for Australian investors to directly invest in copper mining companies.
The imbalance between US copper production and consumption further exacerbates the supply-demand dynamics in the market. With the US producing 850,000 tonnes of copper in 2024 but consuming approximately 1.6 million tonnes, the need for imports at tariff-affected prices is evident, leading to potential widening of US copper premiums.
Recent data from ETF providers indicated that defence and precious metals sectors have been outperforming, driven by geopolitical tensions and a flight to safe-haven assets globally. The Global X Defence Tech ETF and the Betashares Global Gold Miners Currency Hedged ETF have delivered significant returns this year amid escalating conflicts and tariffs, garnering substantial investor interest.
Notably, the Australian ETF industry marked another milestone at the end of the financial year, with total assets under management reaching $280 billion, reflecting a 97 per cent increase compared to the previous year. The industry’s growth underscores the evolving investment landscape and the increasing appetite for thematic ETFs amid market uncertainties.
As investors navigate the evolving market conditions and seek diversification, ETFs like those focused on copper mining and precious metals offer avenues for exposure to sectors that are witnessing significant price surges and heightened investor interest.
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