AIRR ETF: Bet on Copper and Industrial Onshoring in 2026

AIRR ETF: Riding the Waves of Copper and Industrial Onshoring in 2026

The global investment landscape is constantly shifting, presenting both challenges and opportunities for investors. As we move into 2026, two compelling trends are capturing attention: the surging demand for copper and the resurgence of industrial onshoring in the United States. Savvy investors are looking for ways to capitalize on these trends, and the AIRR ETF offers a unique avenue to do just that.

Understanding the AIRR ETF

The First Trust RBA American Industrial Renaissance ETF (AIRR) is designed to track the performance of small and mid-cap U.S. companies in the industrial and community banking sectors. It focuses on companies that are expected to benefit from a potential regain in market share within the U.S. industrial sector. This makes it a potentially attractive option for investors looking to tap into the onshoring trend.

As of January 2026, AIRR holds 53 stocks, with top holdings including companies like C.H. Robinson Worldwide, Comfort Systems USA, and MasTec, Inc. These companies operate in sectors poised to benefit from increased domestic manufacturing and infrastructure development. The ETF has an expense ratio of 0.70%.

The Copper Connection: Why It Matters

Copper is often referred to as “Dr. Copper” because its price movements are seen as an indicator of global economic health. This industrial metal is essential for a wide range of applications, including:

Electrical Grids and Power Infrastructure: Copper is a key component in power transmission and distribution networks.
Electric Vehicles (EVs): EVs require significantly more copper than internal combustion engine vehicles.
Renewable Energy: Solar panels, wind turbines, and other renewable energy technologies rely heavily on copper.
Data Centers: The increasing demand for computing power and AI is driving the construction of data centers, which consume vast amounts of copper.

Analysts predict a growing refined copper deficit of ~330 kmt in 2026, potentially driving prices upwards. J.P. Morgan Global Research expects copper prices to average ~$12,075/mt for the full year, with a possibility of reaching $12,500/mt in the second quarter. While Goldman Sachs Research expects copper prices to decline somewhat in 2026 from their recent record highs, they remain bullish on copper prices beyond 2026. They expect demand for the metal to overtake supply from 2029 onwards, pushing prices higher.

Industrial Onshoring: A Manufacturing Renaissance

For decades, many U.S. companies offshored their manufacturing operations to countries with lower labor costs. However, several factors are now driving a resurgence of industrial onshoring, or the relocation of manufacturing back to the United States:

Supply Chain Resilience: The COVID-19 pandemic exposed the vulnerabilities of relying on distant and complex global supply chains. Onshoring provides greater control and reduces the risk of disruptions.
Geopolitical Tensions: Trade wars and geopolitical instability have made companies reconsider their dependence on foreign suppliers.
Government Incentives: The U.S. government has implemented policies and incentives to encourage domestic manufacturing, including tax benefits and infrastructure investments.
Automation and Technology: Advances in automation, robotics, and AI are reducing the labor cost advantages of offshoring, making U.S.-based production more competitive.
Cost Management: While it can be tempting to see offshoring as the way to go for cheaper labor, there are customs fees and transport costs to factor in. These tariffs and duties can spiral out of control at any time, let alone when geopolitical tensions are making imports and exports more expensive. Onshoring costs can therefore prove more predictable, so forecasts are more robust and straightforward for finance teams.

This onshoring trend is expected to create new jobs, stimulate local economies, and enhance U.S. economic security. In 2022, approximately 360,000 manufacturing jobs returned to the U.S., and forecasts project around 400,000 jobs returning in 2023.

How AIRR Benefits from These Trends

The AIRR ETF is strategically positioned to benefit from both the copper demand and industrial onshoring trends. Many of the ETF’s top holdings are companies involved in:

Infrastructure Development: Construction and engineering firms that build factories, transportation networks, and energy infrastructure.
Manufacturing: Companies that produce goods in the United States, contributing to the growth of the domestic industrial sector.
Transportation: Companies involved in the movement of goods within the U.S., benefiting from increased domestic production.

By investing in these companies, the AIRR ETF offers investors exposure to the potential upside of increased copper demand and the onshoring of industrial activity.

Risks and Considerations

While the AIRR ETF presents a compelling investment opportunity, it’s essential to be aware of the potential risks:

Market Volatility: The stock market is inherently volatile, and the value of the AIRR ETF can fluctuate based on overall market conditions and investor sentiment.
Sector Concentration: The ETF is concentrated in the industrial sector, which can be sensitive to economic cycles and changes in government policy.
Interest Rate Sensitivity: Rising interest rates could slow down capital spending and dampen the onshoring trend.
Competition: Companies within the ETF’s portfolio face competition from both domestic and international players.
Copper Price Fluctuations: While most analysts are bullish on copper, a broader macro slowdown could derail forecasts.

Is AIRR a Good Investment?

The AIRR ETF presents a targeted approach to capitalize on the expected increase in copper demand and the ongoing onshoring of American industry. The ETF’s holdings are well-positioned to benefit from these trends, potentially offering investors attractive returns. However, it’s crucial to consider the risks and conduct thorough research before making any investment decisions.

Disclaimer: This is not financial advice. Please consult with a qualified financial advisor before making any investment decisions.