Global X is cutting the fees on its copper miners ETF a week after BlackRock launched a similar strategy at a lower cost.
In a shareholder notice, Global X said it would be reducing the total expense (TER) on the Global X Copper Miners UCITS ETF (COPX) from 0.65% to 0.55%, the same price as BlackRock’s freshly launched fund.
Global X will hope the fee reduction will stop investors from its $58m ETF defecting to the iShares product. The two funds are the only copper miners ETFs on the European market, with Global X launching COPX in November 2021.
Global X declined to comment but told shareholders the fee cut would take place on 5 July.
COPX has returned 6.8% year to date, with the price of copper remaining volatile on concerns China’s rebound was not materialising as hoped. Copper exchange-traded products recorded a stellar start to the year on the China re-opening story.
BlackRock launched COPM as a play on the net zero transition, given the commodity’s role in electronification across renewable energy, electric vehicles and broader infrastructure.
Copper’s role in the transition has fueled huge demand over the past few years, however, JP Morgan estimates the world will need a 54% larger supply of copper by 2030 in order to follow the current path to net zero.