Why Invest in Copper Miners ETF?

Electric vehicles, AI, solar power, and power grid updates—behind almost every word used to describe the next big thing, there is copper. Naturally, the future demand for copper looks strong. According to the latest report from S&P Global, global copper demand is expected to grow by about 2.7% each year until 2040.

Honestly, looking at this growth rate by itself, it might not look very exciting.

However, what really makes copper a great investment is that, unlike other commodities, its supply is very tight while its demand is highly stable. These two points are crucial when investing in commodity asset class. Let us look at why investing in copper makes sense through these two crucial perspectives.

Global X Copper Miners ETF (3014 HK)

https://www.globalxetfs.com.hk/funds/copper-miners-etf/

[Figure1] Historical Copper Price Trend

Source: LME, August 2026

First, copper supply is very tight, compared to other commodities.

Even if demand looks great, an investment loses its value if supply is bigger than demand.

Lithium is the very example of this. Just a few years ago, everyone called lithium the most important commodity for electric vehicles. People thought a supply shortage was guaranteed. Demand was indeed strong, growing by over 25% each year from 2020 to 2025. However, the real issue was supply. Mining companies developed lithium mines much faster than expected. Global lithium production jumped by nearly 29% each year over the last five years.

Why did lithium supply grow so fast? Every country has its own story, but the main reason is simple. Lithium only got attention 30 years ago from miners, when lithium batteries were first sold. Nobody cared about lithium during the Industrial Revolution of the 18th century and the electricity boom of the 19th century. Because of this short history, high-quality lithium mines are still common across the world. As a result, a brand-new lithium mine project only takes about 5 years to complete and start real production.

[Figure2] Comparison of Copper and Lithium from Supply Side

Category	Copper	Lithium
Geological Mining Concentration	Concentrate: Chile, Peru, and the DRC control ~50% of extracted ores	Moderate: Brines in South America; hard rock in Australia and in China
Completion Lead Times	15 – 18 years to move a new mine from discovery to production.	3 – 7 years for brine evaporation or hard-rock mining.
Easiness to Start a Greenfield Project	Multi-billion-dollar upfront capital budgets required. Multi-decade permitting reviews	Significantly lower capital cost to start a hard-rock pit. Rapid setup times allow junior miners to scale up quickly.

Source: Mirae Asset Global Investments (HK)

On the other hand, copper is totally different. Since the late 19th century, copper has been a key material for building modern industries. Miners have already found and used up the easy, high-quality copper mines over the last hundred years.

The main copper mines we use today are now getting too old. The older a mine gets, the lower the quality of the copper rock becomes, and the deeper companies must dig. If a company wants to build a brand-new, large copper mine, it takes an average of 15 years from the first dig to actual production.

For this reason, S&P Global, a leading forecaster, projects that global copper supply will only grow by about 2.3% each year till 2040. This slow growth rate means the market will face a 10 million metric ton shortfall by 2040, leaving supply 24% short of demand. This is lower than the 2.7% demand growth rate we talked about earlier, which will likely push copper prices up.

[Figure 3] Long Term Copper Demand and Supply Balance Forecast

Source: S&P Global forecast, 2026

Second, compared to other commodities, copper demand is growing reliably and steadily.

Regarding demand, most other commodities tend to face stagnant demand or unpredictable volatility. To start, many commodities have very low growth expectations. For example, crude oil demand is expected to grow by less than 1% p.a. over the next ten years, due to the accelerating penetration of EVs (forecast by IEA).

Global iron ore demand is also expected to stall, growing by a mere 0.2% each year over the next decade. The massive investment boom in Chinese real estate is over, and the market cannot find a new buyer to replace the Chinese real estate market, which used to make up a staggering 25% of the total global iron ore demand.

In contrast, copper demand is set to grow naturally due to its unique structure. First, this is thanks to the steady rise of EVs. An EV uses about four times more copper than a conventional gas-powered car. Second, the rising share of clean energy in the global power mix structurally drives copper demand. Power grid investment alone accounts for roughly 30% of global copper demand while the Chinese real estate market makes up only about 5% of the global copper market. Indeed, another attractive feature of copper is that its demand is well-diversified across different sectors.

[Figure 4] Copper Demand Breakdown by Vehicle Type

Category	ICE Vehicle	EV
Battery	~1 kg (12V starter)	25-30 kg
Electric Motor / Inverter	0 kg	20-25 kg
High-Voltage Wiring	0 kg	15-20 kg
Low-Voltage Harness	18-22 kg	18-22 kg
Onboard Charger / DC-DC	~1 kg	2-4 kg
Total>	20-25 kg>	80-85 kg>

Source: IEA, ICA, S&P Global Commodity Insights

One might ask: aren’t there other raw materials tied to this electrification trend, like cobalt and nickel?

Just a decade ago, cobalt and nickel were the focus of excitement. Today, however, the market mood has completely changed. Battery manufacturers are dropping expensive cobalt and nickel by switching to cheaper lithium iron phosphate (LFP) batteries. This shift has slowed down the demand for high-nickel batteries that once ruled the market.

What if copper prices spike aggressively and copper is replaced by other commodities? Companies and users may look for alternatives like aluminium. However, aluminium has lower electrical conductivity than copper. It cannot replace copper in high-voltage, high-density use cases. While metals like silver offer better conductivity, they are far too expensive to compete with copper on a large scale.

In conclusion, because of these two attributes of supply tightness and stable demand, copper stands out as the most compelling commodity to watch as an investment.

So, how should you invest?

You can look at the Global X Copper Miners ETF (3014 HK), which invests in global leading copper mining companies. This product lets you invest in the potential for a long-term, structural rise in copper prices. When copper prices go up, a mining company’s selling price typically rises straight away. However, their costs like labour, equipment, and energy may not move by the same amount in the short term. This creates operating leverage that may significantly multiply the company’s earnings. However, this leverage can also work in the opposite direction, and earnings may fall materially if copper prices decline.

[Figure5] Top 10 holdings of Copper Miners ETF

Name	Ticker	Weight (%)
FIRST QUANTUM MINERALS	FM CN	7.91
SOUTHERN COPPER CORP	SCCO US	7.82
FREEPORT-MCMORAN	FCX US	7.78
HUDBAY MINERALS	HBM CN	7.65
TECK RESOURCES	TECK/B CN	7.47
GRUPO MEXICO SAB DE CV	GMEXICOB MM	7.35
KGHM POLSKA MIEDZ	KGH PW	6.91
ANTOFAGASTA	ANTO LN	6.75
LUNDIN MINING	LUN CN	6.68
MUELLER INDUSTRIES	MLI US	6.52

Source: Mirae Asset Global Investments (HK), 28 Sept, 2026