Copper ETFs Stand Ready for Growth as AI Infrastructure Demands Reshape 2026 Market

The copper market finds itself poised for substantial gains in 2026, underpinned by a powerful convergence of structural forces. London Metal Exchange copper has reached unprecedented levels, breaking through $12,000 per metric ton with year-to-date appreciation of 42%, signaling far more than a cyclical rally. Rather, this price movement reflects a fundamental supply-demand imbalance where rapid artificial intelligence infrastructure deployment collides with limited global production capacity—a dynamic that analysts expect to persist throughout the coming year.

Why Copper Has Become Critical Infrastructure

The explosive build-out of AI data centers has fundamentally altered copper’s role in global supply chains. Unlike traditional construction projects where material costs represent negotiable line items, data center developers view copper as a non-negotiable component of their budgets. High-capacity power transmission, transformer systems, and advanced cooling mechanisms all depend on copper’s unique conductive properties. Industry analysis from Wood Mackenzie reveals that this demand segment exhibits extreme inelasticity—project developers will pay whatever necessary to secure adequate copper supplies.

The projections are striking: global copper consumption is anticipated to grow 24% by 2035, with artificial intelligence infrastructure serving as a primary growth catalyst. Wood Mackenzie’s research team calculated that even modest acceleration in data center construction schedules can trigger copper price increases exceeding 15%. Given forecasts that AI systems will require an incremental 2,200 terawatt-hours of electricity annually by 2035, sustained price appreciation appears structurally supported.

A Broader Demand Picture Extends Beyond AI

While AI represents the most visible demand driver, multiple converging trends create a robust case for copper’s continued appreciation. Energy transition initiatives, electrical grid modernization, and transportation electrification each require substantial new copper deployment. Infrastructure resilience projects and national security considerations are reshaping government procurement policies in ways that further strengthen demand.

Satisfying this consumption surge demands roughly 8 million tons of newly developed mine capacity plus 3.5 million tons of recovered scrap material. Supply disruptions at major operations—particularly Indonesia’s Grasberg mine alongside declining ore grades in Chile—have created a projected 330,000-ton deficit for 2026 alone, according to J.P. Morgan analysis. This shortage environment remains the critical foundation supporting price strength.

Institutional Forecasts Point Toward Sustained Appreciation

Expert predictions vary, but most project continued strength. J.P. Morgan takes the most bullish stance, modeling an average LME copper price of $12,500 per ton during second-quarter 2026, with a full-year average of $12,075, citing supply constraints and AI-driven demand acceleration as primary supports. The investment bank emphasizes that these targets reflect conservative assumptions.

Goldman Sachs offers a more measured perspective, anticipating near-term moderation toward $10,710 average pricing in the first half of 2026, then stabilizing between $10,000 and $11,000 for the full year, assuming global supply expansion prevents prices from exceeding $11,000. Notably, even Goldman’s long-term thesis remains constructive—the bank projects copper reaching $15,000 per ton by 2035, acknowledging that structural demand forces eventually overwhelm temporary oversupply scenarios.

Building Diversified Copper Exposure Through ETFs

Rather than concentrating capital in individual mining equities, investors seeking to participate in copper’s growth appear better positioned through diversified exchange-traded funds. This approach provides exposure to multiple producers while reducing single-company risk.

Global X Copper Miners ETF (COPX) captures the sector effectively with $4.56 billion in assets and holdings encompassing 41 copper mining enterprises. The fund delivered 95.3% returns year-to-date, with its net asset value standing at $72.20 as of December 30, 2025. At 65 basis points in annual expenses, COPX traded 3.77 million shares during the final trading session, indicating solid liquidity for position adjustments.

iShares Copper and Metals Mining ETF (ICOP) provides exposure to 48 global mining operations with $171 million in net assets. ICOP appreciated 79.8% year-to-date, with portfolio construction emphasizing established miners: Freeport-McMoRan (8.18% weighting), Anglo American (7.91%), and BHP Group (7.73%). The fund’s December 30 NAV registered $44.42, with 47 basis points in fees and moderate daily trading volume of 0.18 million shares.

Sprott Copper Miners ETF (COPP) combines physical copper holdings with mining equity exposure across 62 companies, managing $97.4 million in assets. Year-to-date performance reached 71.7%, with December 30 NAV at $34.93 and 65 basis points in annual costs. Trading activity averaged 0.18 million shares daily.

United States Copper ETF (CPER) delivers direct commodity exposure through COMEX copper futures contracts rather than equity holdings. With $460.7 million under management, CPER gained 40.1% year-to-date and carried a December 30 NAV of $35.44. At 106 basis points in fees—reflecting futures contract management costs—CPER averaged 1.39 million shares in daily trading volume.

Positioning for Copper’s Structural Growth Phase

The convergence of artificial intelligence infrastructure expansion, electrification requirements, and constrained supply creates conditions that appear poised to support copper appreciation throughout 2026 and beyond. Whether through COPX’s comprehensive mining exposure, ICOP’s established producer focus, COPP’s physical commodity component, or CPER’s direct futures-based approach, investors can construct copper allocations matching their risk tolerances and return objectives. The fundamental supply-demand dynamics appear to offer a genuine multi-year opportunity rather than a temporary trading phenomenon.