Horizons Expands Engagement with Solactive with ETF Tracking Solactive North American Listed Copper Producers Index, First of Its Kind in Canada
Recent years have seen a surge in the popularity of thematic investments. These strategies allocate assets into stocks or other investments based on specific business sectors or themes, intending to benefit from the materialization of trends, technological innovation, and advancements. Copper, for instance, is being increasingly used in a wide range of industries that are tied to economic expansion, like infrastructure, technology, electronics, electric cars, and renewable energy. Envisaging this potential, ETF issuer Horizons ETFs expanded its engagement with Solactive and launched the Horizons Copper Producers Index ETF, which aims to replicate the Solactive North American Listed Copper Producers Index. It is the first ETF in Canada to provide investors with exposure exclusively to companies involved in copper mining.
The Solactive North American Listed Copper Producers Index is designed to provide exposure to the performance of securities that are active in the copper ore mining industry and includes small, mid, and large-capitalization companies, listed in North America. To be included in the index, companies must be first classified as “base metal mining” and then either as a pure play, which have copper ore mining as their main activity, or diversified company, which include the keyword “copper” in their business description. All eligible securities are then ranked based on their share class market capitalization in descending order. Following that, the highest-ranking securities are selected until the index reaches 20 index constituents.
Timo Pfeiffer, Chief Markets Officer at Solactive, commented: “Solactive is committed to identify trends in various asset classes. We are honored that Horizons ETFs shares this view with us and chose Solactive once more to give investors access to engage in an industry that has shown a steady increase over the last years.”
Steve Hawkins, President and CEO of Horizons ETFs, commented: “More than any other metal today, copper is arguably the most important for fueling the future of global growth. A key metal for electrical conduction, for decades, copper consumption has steadily increased as countries – particularly in Asia – have undergone massive economic expansion. Now, with the demand driven by the green energy and electric vehicle boom, copper could continue to benefit from its usage in the cutting-edge technologies of tomorrow.”