Copper prices have surged to historic highs this year, with London Metal Exchange (“LME”) copper recently topping $12,000 per metric ton, reflecting a 42% year-to-date increase. This remarkable rise is driven by a structural market shift — explosive demand from artificial intelligence (AI) is colliding with constrained global supply, creating what analysts describe as a “very tight” market.
Indeed, while factors like U.S. tariffs, weak dollar, and inventory stockpiling triggered the initial price rally, the underlying fundamentals, particularly that of surging demand tied to electrification and digital infrastructure, suggest we are entering a long-term “supercycle.”
For investors, this backdrop presents an opportune moment to make a grand entry into diversified copper exchange-traded funds (ETFs), rather than making concentrated bets on individual miners, as a profitable move for 2026.
Before suggesting a few copper ETFs to consider for your watchlist, it’s worth exploring the strong link between AI and copper demand, other key growth catalysts for the red metal, and its overall growth prospects. Understanding these factors can help investors make more informed decisions.
The rapid build-out of AI data centers has lately emerged as a major new pillar of copper demand, thanks to the metal’s critical role in high capacity power lines, transformers and cooling infrastructure.
To this end, industry experts like Wood Mackenzie highlight that data center demand is highly “inelastic,” meaning developers will pay whatever it costs to secure copper, which represents a tiny fraction of total project budgets. According to Wood Mackenzie’s Horizons report, published in October 2025, global copper demand is estimated to surge 24% by 2035, with AI playing a critical role as a growth catalyst.
Notably, Wood Mackenzie believes a sudden surge in data center construction can trigger price spikes of 15% or more for the red metal. With AI projected to consume an additional 2,200 TWh of electricity by 2035 (as per global data centre projects tracked by Wood Mackenzie’s Power team), we may expect to witness more copper price inflation in the coming days.
AI is just one driver of the broader surge in copper demand, alongside the energy transition, grid modernization, and transport electrification. Beyond data centers, initiatives focused on national security and infrastructure resilience are also reshaping global copper demand.
Meeting this enormous demand will require around 8 million tons of new mine capacity plus 3.5 million tons of additional scrap (as per Wood Mackenzie). Surely, this creates a golden opportunity for a steady price hike amid an already scarce supply of the red metal, with major disruptions at mines like Grasberg in Indonesia and falling ore grades in Chile having led to a projected 330,000-ton deficit for 2026 (as estimated by JP Morgan).
Copper price prospects remain strong over the coming years, though 2026 forecasts vary. J.P. Morgan is particularly optimistic, projecting LME copper to average $12,500 per ton in second-quarter 2026 and $12,075 for the full year, citing supply disruptions and the AI-driven demand surge as key upside factors.
On the other hand, Goldman Sachs expects a near-term pullback from record highs to an average of $10,710 in the first half of 2026, while for the full year, it forecasts prices to remain in the range of $10,000-$11,000, with the expectation that the global surplus of supply will prevent copper prices from exceeding $11,000. However, by 2035, Goldman Sachs predicts the LME copper price to reach a solid $15,000 per ton.
Given the strong convergence of demand drivers and supportive institutional forecasts, investors looking to gain exposure may consider the following copper ETFs:
Global X Copper Miners ETF COPX
This fund, with assets worth $4.56 billion, provides exposure to 41 copper mining companies. COPX has surged a solid 95.3% year to date. Its net asset value (NAV) was $72.20 as of Dec. 30, 2025.
The fund charges 65 basis points (bps) as fees. It traded at a good volume of 3.77 million shares in the last trading session.
iShares Copper and Metals Mining ETF ICOP
This fund, with net assets worth $171 million, provides exposure to 48 global copper and metal ore miners. ICOP has soared 79.8% year to date. Its top three holdings include Freeport McMoran FCX (8.18%), Anglo American NGLOY (7.91%), and BHP Group BHP (7.73%).
Its NAV was $44.42 as of Dec. 30, 2025. The fund charges 47 bps as fees. It traded at a volume of 0.18 million shares in the last trading session.
Sprott Copper Miners ETF COPP
This fund, with net assets worth $97.4 million, provides exposure to physical copper and 62 copper miners. COPP has rallied 71.7% year to date.
Its NAV was $34.93 as of Dec. 30, 2025. The fund charges 65 bps as fees. It traded at a volume of 0.18 million shares in the last trading session.
United States Copper ETF CPER
This fund, with net assets worth $460.7 million, reflects the performance of the investment returns from a portfolio of copper futures contracts on the COMEX exchange. CPER has gained 40.1% year to date.
Its NAV was $35.44 as of Dec. 30, 2025. The fund charges 106 bps as fees. It traded at a volume of 1.39 million shares in the last trading session.
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Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report
BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report
Global X Copper Miners ETF (COPX): ETF Research Reports
iShares Copper and Metals Mining ETF (ICOP): ETF Research Reports
Sprott Copper Miners ETF (COPP): ETF Research Reports
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