Metals Rally Persists as Key Commodities Drive the iShares Metals & Mining ETF

The surge in metals and industrial minerals is increasingly framed as a national-security concern. With demand accelerating on the back of the global energy transition, governments are imposing export controls and building strategic reserves. The big question: can the iShares MSCI Global Metals & Mining Producers ETF sustain gains from this strategic shift over time?

• The sector benefits from robust demand for materials essential to decarbonization.
• Copper is at the heart of consolidation activity amid looming supply shortages.
• The ETF has delivered a year-to-date total return of 21.76%.

The mining sector is entering 2026 with cautious optimism. Prices for most industrial metals are trending higher, supported by tighter supply and the needs of the Green Tech economy. Policy moves in the United States and the European Union aim to secure access to pivotal minerals, altering market dynamics at a fundamental level.

A key gauge for near‑term developments will be the BMO Global Metals, Mining & Critical Minerals Conference, scheduled for February 22–25 in Florida. Industry executives and policymakers will map out future supply strategies, with the February 24 appearance by Alcoa expected to yield insights into current market sentiment and near-term business outlook.

M&A Surge and Copper Shortage

Mergers and acquisitions activity is expected to stay elevated, driven by the race to secure critical raw materials. Copper, in particular, stands out due to concerns about growing supply gaps and record prices at the start of 2026, which could make producers appealing takeover targets.

Should investors sell immediately? Or is it worth buying iShares MSCI Global Metals & Mining Producers ETF?

The iShares MSCI Global Metals & Mining Producers ETF reflects this trend by concentrating on 235 companies involved in the extraction of industrial metals. A defining characteristic of the fund is its explicit exclusion of gold and silver producers, setting it apart from traditional precious-metals investments.

Solid Year-to-Date Performance

Investor interest in commodity-focused exchange-traded funds remains strong. In the previous week, sector inflows topped USD 1.1 billion. The iShares ETF itself added roughly USD 489 million to its assets under management over the past 30 days. There was a slight retreat in the last five days, with outflows totaling USD 35.6 million, but the overall momentum remained positive.

The fund has achieved a year-to-date total return of about 21.76% as of the day before yesterday, aligning with a broader rebound in global industrial activity. With an expense ratio of 0.39%, the ETF represents a cost-efficient vehicle for investors seeking broad exposure to the mining sector without the volatility associated with individual precious metals holdings. The upcoming industry conference later in February will indicate whether elevated pricing and the ongoing M&A wave can sustain momentum into the rest of the year.