ETF LAUNCH: Silver Miners and Copper Miners (SIL, COPX, SLW, PAAS, FCX, SCCO)

We saw the launch of two new ETF products today covering the global commodities boom.  In the metals and mining sector, Global X Management launched the Apex Silver Mines Ltd. (NYSE: SIL) and the Global X Copper Miners ETF (NYSE: COPX).  These appear to be the first of their kind for dedicated metals mining this far down the food chain when it comes to metals mining.   These new exchange-traded funds also have exposure to many common names in the field of mining.

The Global X Silver Miners ETF is, per the management company and per our universe, the only dedicated ETF focused on global silver mining companies.  As it invests in silver mining companies, Golbal X says this provides “a differentiated investment profile to investing in physical silver.’

The ETF Silver Miners ETF is meant to track the Solactive Global Silver Miners Index, which is made up of the largest and most liquid silver mining companies in the world. The majority of holdings are Canadian based companies but also include companies based in the US, Mexico, Peru, and Russia.  The fund’s largest index components were Fresnillo, Industrias Penoles, Silver Wheaton Corp. (NYSE: SLW), and Pan American Silver Corp. (NASDAQ: PAAS).

The Global X Copper Miners ETF is meant to track the Solactive Global Copper Miners Index, which is made up of the largest and most liquid copper mining companies with components based in Canada, Australia, UK, US, Mexico, China, Poland, Switzerland, and South Africa.  Its largest index components were Freeport-McMoran Copper & Gold (NYSE: FCX), Xstrata, Grupo Mexico, and Southern Copper Corp. (NYSE: SCCO).

Investors need to be aware that these are the first of their kind, but they also need to be aware that some of these individual components are also diversified.  When mining for any of these metals, there are other metals generally found too.  Miners looking for gold often find copper, silver, or zinc.

The Copper Miners ETF has seen a slow and quiet reception with only 3,700 shares traded so far, but the Silver Miners ETF has traded over 50,000 shares on its first day.

JON C. OGG