HANetf launches 'pure play' Article 9 copper mining ETF

investmentweek.co.uk:

HANetf said that demand for copper is likely to outstrip supply as the clean energy transition takes hold.

Sprott Copper Miners ETG-Screened UCITS ETF, which listed on the London Stock Exchange today (7 December), will provide investors with «pure play» and ESG-screened exposure to copper mining equities.

This is the third time HANetf has partnered with the asset management firm, following the creation of an uranium miners ETF in May 2022 and an energy transition material ETF in March 2023.

The ETF tracks the Nasdaq Sprott Copper Miners ESG Screened index and aims to ensure compliance with SFDR Article 9 through ESG reviews by Skarn Associates, controversy review by Sustainalytics and additional compliance screens with the UN Global Compact. 

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«The most recent commodity supercycle, led by the industrialisation of China, is giving way to a new cycle dominated by the global energy transition,» the firm said. 

«Copper's use in electricity grids, electric vehicles (EVs) and renewable energy technologies may take over as its key growth drivers.»

HANetf added that demand for copper is likely to outstrip supply, as the clean energy transition takes hold. The firm cited a Goldman Sachs study, which found that just 4% of copper consumption in 2020 was allocated to green uses. 

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By 2030 that figure is expected to rise to 17%, it said, while Goldman Sachs also estimated copper demand will reach 60 million tonnes by 2030.

«Given the demand-supply dynamics for physical copper, investors may want to consider copper miners as a way to gain exposure to the sector. Historically, copper miners have outperformed the spot price of copper,» HANetf