Global X Funds, a New York-based provider of exchange-traded funds, has launched the Global X Silver Miners ETF and Global X Copper Miners ETF on NYSE Arca.
Both funds have a 0.65 per cent expense ratio.
The Global X Silver Miners ETF is the only ETF in the world targeting silver mining companies. It tracks the Solactive Global Silver Miners Index, comprised 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. As of 31 March 2010, the largest index components were Fresnillo, Industrias Penoles, Silver Wheaton, and Pan American Silver.
According to commodities analysts, silver demand should remain strong as a result of both investment interest and increased use in the consumer and industrial sectors. Fifty four per cent of silver demand is industrial and, according BMO Capital Markets, silver industrial demand is expected to rise 19 per cent this year.
The Global X Copper Miners ETF tracks the Solactive Global Copper Miners Index, comprised of the largest and most liquid copper mining companies in the world. The components are based in Canada, Australia, UK, US, Mexico, China, Poland, Switzerland, and South Africa. As of 31 March 2010, the largest index components were Freeport-McMoran, Xstrata, Grupo Mexico, and Southern Copper.
Much of the world’s infrastructure depends on copper, and governments are expected to spend approximately USD30trn on infrastructure projects over the next 20 years, according to a 2009 study by CIBC World Markets. China, as the world’s largest consumer of copper, is projected to use 15.6 billion pounds of copper each year by 2015, according to Barclays Equity Research.
"SIL and COPX provide investors with efficient and targeted exposure to silver and copper mining companies, respectively. Both metals are essential for the global economy and may see growing demand as the economic recovery continues," says Bruno del Ama, chief executive of Global X Funds.
