Sprott to Add Physical Copper Allocation to Its Copper Miners ETF (COPP)

Rhea-AI Summary

Sprott Asset Management USA announced that its Copper Miners ETF (COPP) will include a 4.75% allocation to physical copper effective June 23, 2025, making it the first ETF to provide exposure to both physical copper and pure-play exposure to copper miners. The physical copper allocation will be implemented through the Sprott Physical Copper Trust, the world's first physical copper investment fund. This change will be executed through a modification to the underlying Nasdaq Sprott Copper Miners Index (NSCOPP). The ETF will continue to provide exposure to large-, mid-, and small-cap copper miners alongside the new physical copper component, offering investors a comprehensive approach to copper investment opportunities.

Positive

• First-mover advantage as the only ETF offering both physical copper and mining exposure
• Enhanced diversification through 4.75% physical copper allocation
• Provides investors with unique access to the growing copper market through multiple vehicles
• Leverages Sprott's specialized experience in metals and mining

Negative

• Relatively small allocation to physical copper (4.75%) may have limited impact on overall performance
• Implementation of changes may result in temporary portfolio adjustments and potential tracking error

Insights

ETF Strategist

Sprott's COPP ETF adding physical copper allocation creates a unique investment vehicle combining physical metals with mining equities.

Sprott's upcoming addition of physical copper to their Copper Miners ETF (COPP) represents a significant innovation in the commodities ETF landscape. Effective June 23, 2025, COPP will include a 4.75% allocation to physical copper through the Sprott Physical Copper Trust, making it the only ETF providing exposure to physical copper alongside mining equities.

This strategic modification occurs through a change to the underlying Nasdaq Sprott Copper Miners Index (NSCOPP). The hybrid approach combines two traditional ways investors access commodity markets – through mining equities and physical metal – into a single investment vehicle. This structure may offer enhanced portfolio diversification compared to pure equity exposure, as physical metals and mining stocks can display different price behaviors during market cycles.

The development highlights Sprott's continued expansion in critical materials investing. The firm has systematically built a comprehensive suite of specialized ETFs targeting strategic metals essential to energy transition, including uranium, lithium, nickel, and now this enhanced copper offering. This product innovation aligns with growing investor interest in critical minerals needed for electrification and renewable energy infrastructure.

For investors seeking copper exposure, this unique structure eliminates the need to separately purchase mining stocks and physical metal allocations, potentially streamlining portfolio construction. The change positions COPP distinctively in the competitive landscape of natural resource ETFs, where product differentiation is increasingly important for attracting investor capital.

The Addition of Physical Copper to the Sprott Copper Miners ETF (COPP) Will Make COPP the Only¹ ETF to Provide Investment Exposure to Physical Copper

TORONTO, May 21, 2025 (GLOBE NEWSWIRE) --  Sprott Asset Management USA, Inc. today announced that, effective June 23, 2025, the Sprott Copper Miners ETF (COPP) will include an allocation to physical copper. This change will make COPP the only¹ ETF to provide exposure to physical copper and the only¹ ETF to provide pure-play² exposure to large-, mid- and small-cap copper miners.

The change will result from a modification to the Sprott Copper Miners ETF’s underlying index, the Nasdaq Sprott Copper Miners^TM Index (NSCOPP^TM). At its scheduled June semi-annual rebalance, effective at the market open on June 23, the index will add a 4.75% allocation to physical copper via the inclusion of the Sprott Physical Copper Trust, the world’s first and only physical copper investment fund.³ The revised NSCOPP^TM Index methodology is available here https://indexes.nasdaqomx.com/Index/Overview/NSCOPP.

“Copper is essential in meeting the world’s growing energy needs, and there are currently limited ways investors are able to access the opportunity,” said John Ciampaglia, CEO of Sprott Asset Management LP. “We’re pleased to leverage Sprott’s specialized experience in metals and mining to add unprecedented access to physical copper alongside pure-play copper mining equities in our copper miners ETF.”

Shares of COPP will include the physical copper allocation as of the start of the trading day on June 23, 2025.

COPP is part of Sprott’s growing family of critical materials and precious metals ETFs, which include:

Sprott Critical Materials ETFs:

Sprott Critical Materials ETF	Nasdaq: SETM	Seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Nasdaq Sprott Critical Materials™ Index (NSETM™). The Index is designed to track the performance of a selection of global securities in the critical materials industry.
Sprott Uranium Miners ETF	NYSE Arca: URNM	Seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the North Shore Global Uranium Mining Index (URNMX). The Index is designed to track the performance of companies that devote at least 50% of their assets to the uranium mining industry, which may include mining, exploration, development and production of uranium, or holding physical uranium, owning uranium royalties or engaging in other non-mining activities that support the uranium mining industry.
Sprott Junior Uranium Miners ETF	Nasdaq: URNJ	Seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Nasdaq Sprott Junior Uranium MinersTM Index (NSURNJTM), which is designed to track the performance of mid-, small- and micro-cap companies in uranium mining-related businesses.
Sprott Copper Miners ETF	Nasdaq: COPP	Seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Nasdaq Sprott Copper MinersTM Index (NSCOPPTM), which is designed to track the performance of a selection of global securities in the copper industry, including copper producers, non-producers and physical copper.
Sprott Junior Copper Miners ETF	Nasdaq: COPJ	Seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Nasdaq Sprott Junior Copper MinersTM Index (NSCOPJTM), which is designed to track the performance of mid-, small- and micro-cap companies in copper mining-related businesses.
Sprott Lithium Miners ETF	Nasdaq: LITP	Seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Nasdaq Sprott Lithium MinersTM Index (NSLITPTM). The Index is designed to track the performance of a selection of global securities in the lithium industry, including lithium producers, developers and explorers.
Sprott Nickel Miners ETF	Nasdaq: NIKL	Seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Nasdaq Sprott Nickel MinersTM Index (NSNIKLTM). The Index is designed to track the performance of a selection of global securities in the nickel industry, including nickel producers, developers and explorers.

Sprott Precious Metals ETFs:

Sprott Active Gold & Silver Miners ETF	Nasdaq: GBUG	An actively managed ETF that aims to provide long-term capital appreciation by investing in shares of gold- and silver-focused companies that are engaged in exploring, developing and mining; or royalty and streaming companies engaged in the financing of gold and silver assets. The investment strategy of the Fund is value-oriented and contrarian.
Sprott Gold Miners ETF	NYSE Arca: SGDM	Seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index, the Solactive Gold Miners Custom Factors Index (Index Ticker: SOLGMCFT). The Index aims to track the performance of larger-sized gold companies whose stocks are listed on Canadian and major U.S. exchanges.
Sprott Junior Gold Miners ETF	NYSE Arca: SGDJ	Seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index, the Solactive Junior Gold Miners Custom Factors Index (Ticker: SOLJGMFT). The Index aims to track the performance of small-capitalization gold companies whose stocks are listed on regulated exchanges.
Sprott Silver Miners & Physical Silver ETF	Nasdaq: SLVR	Seeks investment results that correspond (before fees and expenses) generally to the performance of its underlying index, Nasdaq Sprott Silver Miners™ Index (NSLVR™), by investing at least 80% of its total assets in securities of NSLVR. The Nasdaq Sprott Silver Miners Index is designed to track the performance of a selection of securities in the silver industry, including silver producers, developers and explorers, and physical silver.

¹ Based on Morningstar’s universe of Natural Resources Sector Equity ETFs as of 5/21/2025.

² The term “pure-play” relates directly to the exposure that the Fund has to the total universe of investable, publicly listed securities in the investment strategy.

³ Based on Morningstar’s universe of listed commodity funds. Data as of 3/31/2025.

About Sprott Asset Management USA, Inc.

Sprott Asset Management USA, Inc. is a wholly-owned subsidiary of Sprott Inc. (“Sprott”). Sprott is a global asset manager focused on precious metals and critical materials investments. We are specialists. We believe our in-depth knowledge, experience and relationships separate us from the generalists. Our investment strategies include Exchange Listed Products, Managed Equities and Private Strategies. Sprott has offices in Toronto, New York, Connecticut and California, and the company’s common shares are listed on the New York Stock Exchange and the Toronto Stock Exchange under the symbol (SII). For more information, please visit www.sprott.com.

Contact:
Glen Williams
Senior Managing Partner
Investor and Institutional Client Relations
Direct: (416) 943-43945
gwilliams@sprott.com

Dan Gagnier
Gagnier Communications
Direct: (646) 569-5897
sprott@gagnierfc.com

Important Disclosures

An investor should consider the investment objectives, risks, charges and expenses of each fund carefully before investing. To obtain a fund’s Prospectus, which contains this and other information, contact your financial professional, call 1.888.622.1813 or visit SprottETFs.com. Read the Prospectus carefully before investing.

Exchange Traded Funds (ETFs) are considered to have continuous liquidity because they allow for an individual to trade throughout the day, which may indicate higher transaction costs and result in higher taxes when fund shares are held in a taxable account.

The funds are non-diversified and can invest a greater portion of assets in securities of individual issuers, particularly those in the natural resources and/or precious metals industry, which may experience greater price volatility. Relative to other sectors, natural resources and precious metals investments have higher headline risk and are more sensitive to changes in economic data, political or regulatory events, and underlying commodity price fluctuations. Risks related to extraction, storage and liquidity should also be considered.

Shares are not individually redeemable. Investors buy and sell shares of the funds on a secondary market. Only market makers or “authorized participants” may trade directly with the fund, typically in blocks of 10,000 shares.

Nasdaq®, Nasdaq Sprott Copper Miners™ Index, and NSCOPP™ are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by Sprott Asset Management LP. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).

The Sprott Active Gold & Silver Miners and Sprott Silver Miners & Physical Silver ETFs are new and have limited operating history.

Sprott Asset Management USA, Inc. is the Investment Adviser to the Sprott ETFs. ALPS Distributors, Inc. is the Distributor for the Sprott ETFs and is a registered broker-dealer and FINRA Member.

ALPS Distributors, Inc. is not affiliated with Sprott Asset Management USA, Inc.

© 2025 Sprott Inc. All rights reserved.

FAQ

When will Sprott's COPP ETF add physical copper to its holdings?

The physical copper allocation will be added effective June 23, 2025, coinciding with the semi-annual rebalance of the underlying Nasdaq Sprott Copper Miners Index.

What percentage of physical copper will be added to Sprott's COPP ETF?

The ETF will add a 4.75% allocation to physical copper through the Sprott Physical Copper Trust.

How is Sprott COPP ETF different from other copper ETFs?

COPP will be the only ETF offering both physical copper exposure and pure-play exposure to large-, mid-, and small-cap copper miners.

How will Sprott implement the physical copper allocation in COPP ETF?

The physical copper allocation will be implemented through the inclusion of the Sprott Physical Copper Trust in the underlying Nasdaq Sprott Copper Miners Index (NSCOPP).