COPP: Sprott Copper Miners ETF
What this ETF is trying to do
The Sprott Copper Miners ETF (ticker: COPP) is an exchange-traded fund designed to give investors exposure to companies involved in copper mining. Instead of buying physical copper, this ETF invests in a variety of businesses that find and mine the metal. According to its top holdings, it focuses heavily on large mining companies like Freeport-McMoran Inc.
What the numbers show
The data shows that COPP has experienced significant price growth recently.
• Year-to-Date (YTD) Price Return: The share price has increased by approximately 22.45% since the start of the year.
• One-Year Price Return: The share price has grown by approximately 46.88% over the last year.
• One-Year Total Return: When including distributions, the total return for the last year was approximately 50.57%.
To put this in perspective, the estimated price from roughly one year ago was $29.02. The current price is $42.62.
Income and distribution explanation
This ETF provides some level of cash income through distributions. The current distribution yield is approximately 1.93%. This means the cash paid out relative to the ETF's price is about 1.93%.
It is important to note that the distribution frequency is described as "irregular" or "less frequent," with only one payout recorded in the last 12 months. Because the frequency is not regular, investors should not rely on it as a steady stream of monthly or quarterly income.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling share price can sometimes look like erosion, they are not always the same thing.
For COPP, the erosion-risk score is 100, which is labeled as "No price erosion detected." Additionally, there is no severe erosion-risk flag present. The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
Pros
• Strong Price Growth: The ETF has shown high price returns over the last year.
• Positive Total Return: The total return (which includes distributions) has outperformed the simple price return.
• Low Erosion Risk: The current measurements show no signs of significant price deterioration.
Cons
• Irregular Income: Distributions are not frequent, which may be a drawback for those seeking regular cash flow.
• Sector Concentration: The fund is focused specifically on copper miners, meaning its performance is tied to that specific industry.
Beginner takeaway
COPP is an ETF focused on the copper mining industry. It has recently seen strong growth in its share price and total return. While it does pay distributions, they are infrequent. When looking at this ETF, remember that a distribution yield tells you about cash payments, but the total return is the more complete picture of how the investment performed.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | FREEPORT-MCMORAN INC | FCX | 26.38% |
| 2 | TECK RESOURCES LTD CLASS B (SUB VOTING) | n/a | 9.83% |
| 3 | ANTOFAGASTA PLC | n/a | 8.26% |
| 4 | SOUTHERN COPPER CORP | SCCO | 4.91% |
| 5 | KGHM POLSKA MIEDZ SA | n/a | 4.90% |
| 6 | FIRST QUANTUM MINERALS LTD | FQVLF | 4.87% |
| 7 | HUDBAY MINERALS INC | n/a | 4.47% |
| 8 | SPROTT PHYSICAL COPPER TRUST ORD | n/a | 4.47% |
| 9 | LUNDIN MINING CORP | LUNMF | 3.99% |
| 10 | CAPSTONE COPPER CORP | CSCCF | 3.49% |