This is a passive thematic ETF that tracks an index of mining companies around the world that extract copper and other metals. It centers on copper mining companies while diversifying across a variety of metal mining firms, giving investors exposure to the metals price cycle.

It suits investors who want to play rising demand for copper and other metals through mining companies and are willing to accept commodity cycle volatility.

It is a passive (index-tracking) ETF managed by iShares.

The fund tracks an index of mining companies around the world that extract copper and other metals. It centers on copper mining companies while spreading across various metal mining firms. Because it holds mining companies whose earnings depend on metal prices and production volumes, it is structured as a bet on the metals cycle.

• Copper-centered exposure to metal mining
• A bet on the metals price cycle

Assets under management (AUM) stand at $413.6M, and the total expense ratio is 0.47% per year.

Compared with COPX, a copper mining ETF, or GDX and SIL, which are gold and silver mining ETFs, the main points of comparison are the types of metals and the makeup of the mining holdings.

Metal mining companies react sensitively to prices of copper and other metals, production volumes, and the global economy. They tend to be strong when metal demand is in focus and weak during economic slowdowns. Given the nature of mining companies, they tend to be more volatile than the metal prices themselves.

Fund flows into metal mining stocks diverge depending on the metal price outlook, the global economy, and industrial demand. When expectations for copper demand from electric vehicles, power grids, and similar areas grow, capital sometimes moves into related products. It is also worth noting that performance can vary greatly depending on the metals cycle and supply factors.

Exposure to copper and metal demand is its strength, while commodity cycle volatility, mining company risk, and regional concentration are considerations.

For exposure to a broader range of metal and mining companies, PICK is a direct substitute, and for a focus on US metals and mining, products such as XME are also worth comparing. For exposure to junior copper miners, a product such as COPJ can also be considered. Of the COPX, GDX, and SIL shown in the table, COPX shares the same copper mining theme, while the other two invest in gold and silver mining, so the metals differ. What differentiates this ETF is its copper-centered exposure to metal mining.

Here are the points to review before investing in ICOP. Exposure to copper and metal demand is attractive, but commodity volatility, mining company risk, and regional concentration need to be checked in advance. It is also a good idea to compare it with broader metals and gold mining products.

Fluctuations in prices of copper and other metals, a global economic slowdown, and the operational and political risks unique to mining companies are the main variables for short-term performance, and mining stocks are more volatile than the metal prices themselves. Performance depends heavily on the commodity cycle.

It is a suitable candidate for investors who want to play rising demand for copper and other metals through mining companies. If you want broader metals and mining exposure, compare products such as PICK and XME, and if you want copper-centered metal mining exposure, compare this product alongside them before choosing.