Sprott Asset Management and white-label issuer HANetf have partnered to launch a copper mining equity ESG ETF.
The Sprott Copper Miners ESG-Screened UCITS ETF (CPPR) is listed on the London Stock Exchange with a total expense ratio (TER) of 0.59%.
CPPR tracks the Nasdaq Sprott Copper Miners ESG Screened index which offers exposure to pure-play global copper mining equities.
The ETF is categorised Article 8 under the Sustainable Finance Disclosure Regulation (SFDR), with its benchmark undergoing ESG reviews conducted by Skarn Associates, controversy reviews by Sustainalytics as well as screens for compliance with the UN Global Compact.
HANetf said the launch aims to capitalise on the tailwind for the copper mining sector provided by the green energy transition.
It also follows a conversation between HANetf and an institutional investor in the DACH region, who said there was not a copper mining ETF that satisfied its own ESG criteria.
John Ciampaglia, CEO of Sprott AM, commented: “Despite the size of the copper metal market and growing investor interest in the metal as the energy transition gains momentum, it has been challenging for investors to gain targeted exposure to copper miners.
“CPPR has been designed to focus primarily on copper mining companies that derive the majority of their revenue and/or assets from copper.”
Hector McNeil, co-founder and co-CEO of HANetf, added: “CPPR is the first opportunity for European investors to get ESG-screened copper exposure and we believe this is timely given the role copper will play in the global energy.”
CPPR marks third ETF collaboration between the two issuers after launching the Sprott Energy Transition Materials UCITS ETF (SETM) in March and the Sprott Uranium Miners UCITS ETF (URNM) in April 2022.
URNM remains one of the top performing UCITS ETFs so far in 2023, lagging only a handful of blockchain thematic strategies.
CPPR becomes Europe’s third ETF capturing copper mining equities and comes after BlackRock launched the iShares Copper Miners UCITS ETF (COPM) in June.
