Frequently Asked Questions (FAQs)

The Sprott Copper Miners ETF is listed on Nasdaq^® under the symbol “COPP.” Investors can purchase COPP in a brokerage account or by contacting their financial advisor.

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 Miners™ Index (NSCOPP™).

Nasdaq Sprott Copper Miners™ Index (NSCOPP™) is designed to track the performance of a selection of global securities in the copper industry, including copper producers, developers and explorers, and physical copper.

The Index combines Sprott’s decades of experience in the mining sector with Nasdaq’s renowned index expertise. To be eligible for inclusion in the Nasdaq Sprott Copper Miners™ Index (NSCOPP™), a company must meet the following requirements:

Eligibility Requirements

• Be a security listed on an approved exchange.
• The security’s issuers must be classified by Sprott as a copper producer, developer or explorer.
• Have a free-float market capitalization of at least $50 million or $30 million for existing constituents.
• The security must have been publicly traded at least three months prior to the reconstitution reference date.
• A security must have a three-month average daily traded value of at least $50,000 or $30,000 for existing constituents.

Note: The closed-ended trusts investing in physical copper that Sprott sponsors are exempt from the Security Eligibility Criteria.

Constituent Weighting Process

• The Index is a modified free-float market capitalization-weighted index.
• Constituents’ initial weights are determined by dividing each constituent’s free-float market value by the aggregate free-float market value of all constituents.
• Initial weights are adjusted to meet the following constraints:
  • The weighting of the largest individual company is capped at 24%, and the weighting of the second and third largest companies may not exceed 10%. 
  • Securities that make up more than 5% of the Index weight are grouped together. If the combined weight of these securities exceeds 50% of the Index, the smallest weights within this group are reweighted to 4.75% until the group’s total weight is no more than 49% of the Index weight. 
• Weights are then adjusted to meet the following constraints:
  • The weight of physical copper is set to 4.75%.
  • The aggregate weight of securities with a weight greater than 5% may not exceed 49%.
  • No security weight may exceed 24%.
  • No security that is not the top-weighted security may exceed 10%.

Index Rebalancing

• The Index is rebalanced semi-annually in June and December, effective at the market open on the first trading day following the third Friday.

Sprott Asset Management USA, Inc. is the investment adviser to the Sprott Copper Miners ETF. ALPS Advisors, Inc. is the sub-adviser, and ALPS Fund Services, Inc. serves as the administrator. ALPS Distributors, Inc. is the Distributor for the Sprott Copper Miners ETF and is a registered broker-dealer and FINRA Member. Additionally, State Street Bank and Trust Company serves as the custodian and transfer agent.

The weight of physical copper is set to 4.75% at each semi-annual rebalance.

Critical materials are natural materials that are essential to the generation, transmission and storage of energy. Sprott focuses on copper as the critical material required for all energy transmission. Copper is crucial to almost every aspect of electricity—it’s essential to power grids, technology, manufacturing and the energy transition.

With the growing copper demand and supplies challenged by diminished ore grades, extended lead times for new mines and dwindling inventories, copper prices and copper miners may be investment opportunities.

COPP is the only¹ ETF focused on providing pure-play² exposure to copper miners and physical copper. A pure-play copper miner is a producer, developer or exploration company that earns at least 50% of its revenues from copper. Pure-play copper miners are rare, as many top copper producers earn the majority of their revenues from activities related to other materials. Because a pure-play copper miner is closely connected to copper, its earnings and share prices may rise more sharply than the metal itself when copper rallies.

Copper demand is growing

Electricity demand is estimated to increase 169% by 2050³ as middle classes grow in the East, clean energy technologies proliferate, electric vehicles (EVs) gain market share and AI data centers provide a new demand shock for copper markets.

Copper is critical to the future of energy

Copper is required for energy transmission and infrastructure development. Energy grids, clean energy technologies, and current and developing digital technologies such as AI require copper. EVs and renewable energy sources are also more copper intensive. 

Copper and other critical materials are viewed as a national security risk

Nations are rapidly building diversified energy systems, including nuclear and renewables, to insulate themselves from geopolitical, macroeconomic and financial shocks. The U.S. is treating critical materials as a national security risk. It has launched a federal investigation into copper and critical materials, which could result in broad-based tariffs, similar to the 50% imposed on steel and aluminum.

A new U.S. executive order is accelerating the supply of critical materials in the U.S. by removing key bottlenecks, prioritizing copper and critical materials by expediting permitting timelines, streamlining regulatory hurdles and unlocking government-backed financing.

Massive AI data center power requirements are copper-intensive

Globally, data centers’ electricity demand may rise 2.5x by 2030, accounting for more than 3% of the electricity supply.⁴ As data centers’ AI capabilities grow, so does the need for copper-intensive electrical equipment. Cumulative new copper demand from AI data centers is projected at 5 million metric tons by 2030. On an annual basis, this is equivalent to 2.8% of 2030’s forecasted global demand.⁵ Further, BHP Group, the world’s largest mining company, estimates that the copper used in data centers globally will grow sixfold by 2050, to around 3 million metric tons annually.⁶

Copper supply faces challenges

The global copper supply faces significant hurdles, as ore grades are decreasing in quality and copper reserves are shrinking. In addition, there are long lead times to develop new mines, where the average copper mine takes 17 years to move from discovery to first production.⁷ 

The copper supply-demand imbalance is likely to grow, underscoring the critical role of copper mining companies in meeting demand.

Copper miners may benefit as long-term energy requirements evolve

Copper miners may offer a long-term investment opportunity as the energy transition continues and global electricity demand grows. The widening gap between supply and demand could translate into benefits for both copper prices and the mining companies involved. Additionally, long production lead times are causing larger miners to look to acquisitions, and an uptick in mergers and acquisitions (M&A) within the industry could further strengthen the position of copper miners. 

The Sprott Copper Miners ETF expects to declare and distribute all its net investment income, if any, to shareholders as dividends at least annually and on a pro-rata basis. The Fund may distribute such income dividends and capital gains more frequently, if necessary, to reduce or eliminate federal excise or income taxes on the Fund.

Please reach out to your Sprott representative at 888.622.1813 or energytransition@sprott.com for additional questions.

Footnotes

¹ Based on Morningstar’s universe of Natural Resources Sector Equity ETFs as of 6/23/2025.

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 Source: Bloomberg NEF, Transition Metals Outlook 2024.

⁴ Source: IEA, World Energy Outlook 2024.

⁵ Source: JP Morgan, “Copper & AI: The coming wave,” March 2024. SemiAnalysis' March 2024 projections.

⁶ Source: BHP Insights, “Why AI tools and data centers are driving copper demand.”

⁷ Source: S&P Global, April 3, 2025.