Will Copper Lead the Way for Renewable Energy?


The push towards heavier reliance on renewable energy will mean increased mining for commodities that can be used to build the materials, which makes copper a prime option.

“Copper is considered an essential metal for renewables,” Oilprice.com says. “The metal is highly conductive, can easily be shaped into pipes, wires, or sheets, and can remove heat far more rapidly than other metals. In fact, copper itself is a sustainable material. The metal is 100% recyclable and can be used repeatedly without any loss of performance.”

Given this, one ETF worth looking at is the Global X Copper Miners ETF (COPX). COPX seeks to provide investment results that correspond generally to the price and yield performance of the Solactive Global Copper Miners Total Return Index, which is designed to measure broad-based equity market performance of global companies involved in the copper mining industry. The fund is up over 30% so far this year.

Two More ETFs to Make a Back Door Play on Copper

The opportunities don’t stop there. Wind and solar energy materials will also require heavier use of copper, making a pair of two more Global X ETFs a potential growth opportunity.

“Copper has long been a common component in most electrical wiring, power generation, transmission, distribution, and circuitry because of its high conductivity and durability,” Oilprice.com says further. “New energy technologies, however, require even more copper. Photovoltaics (PV) solar power systems contain approximately 5 tonnes (t) per megawatt (MW) of copper, while grid energy storage installations rely on 2.7 to 3.6t per MW.”

Investors can also look at the Global X Solar ETF (RAYS) for opportunities in solar power. RAYS seeks to invest in companies positioned to benefit from the advancement of the global solar technology industry.

This includes companies involved in solar power production, the integration of solar into energy systems, and the development/manufacturing of solar-powered generators, engines, batteries, and other technologies related to the utilization of solar as an energy source.

Additionally, the Global X Wind Energy ETF (WNDY) is for ETF investors looking to capitalize off of wind power. The fund seeks to provide investment results that generally correspond to the Solactive Wind Energy Index.

As such, WNDY seeks to invest in companies positioned to benefit from the advancement of the global wind energy industry, which includes companies involved in wind energy technology production, the integration of wind into energy systems, and the development and manufacturing of turbines that harness energy from wind and convert it into electrical power.

For more news, information, and strategy, visit the Thematic Investing Channel.



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