HomeInvestingUnleashing the 2024 Power Players: The Top 6 Copper ETFs and ETNs Unveiled!

Unleashing the 2024 Power Players: The Top 6 Copper ETFs and ETNs Unveiled!

1. Global X Copper Miners ETF (COPX)

Global X Copper Miners ETF (COPX) is a smart beta fund which aims to provide investors exposure to copper mining companies. The fund tracks the Solactive Global Copper Miners Total Return Index, granting investors enhanced exposure to firms that are involved in the copper mining industry. Rather than relying on market capitalization weights, the fund employs a modified equal-weighted strategy, ensuring that it doesn’t overly concentrate its assets in a small number of stocks. COPX’s portfolio is quite diverse as its assets are spread across 29 holdings in the copper mining industry. It has slightly higher expense ratios compared to some other ETFs, but offers good liquidity for short term and tactical trades.

2. United States Copper Index Fund (CPER)

The United States Copper Index Fund (CPER) is an ETF that aims to reflect the performance of the SummerHaven Copper Total Return Index. This index is designed to reflect the potentials of copper contract investments by employing a methodology that diversifies investments across several months with varying levels of liquidity. It provides investors with cost-effective exposure to the copper market without the need for a futures account. With a lower turnover ratio and a unique structure that minimizes contango, CPER gives potential long-term investors an attractive option.

3. iPath Series B Bloomberg Copper Subindex Total Return ETN (JJC)

Structured as an exchange-traded note (ETN), iPath Series B Bloomberg Copper Subindex Total Return (JJC) aims to give investors efficient access to the returns of the Bloomberg Copper Subindex Total Return. This index reflects potential returns that are available through an unleveraged investment in futures contracts on copper. The index is composed of longer-dated futures contracts, allowing investors to maintain their exposure without frequent trading or rollovers. Unlike ETFs, ETNs have no tracking errors and are backed by the creditworthiness of the issuing institution, which, in this case, is Barclays.

4. PineShare Copper Ultra Long Strategy ETF (PULS)

The PineShare Copper Ultra Long Strategy ETF (PULS) is designed to maximize the exposure to copper by using futures contracts and swaps. The fund does this by leveraging 200% investment exposure to its underlying index, the PineShare Copper Ultra Long Total Return Index. This method can lead to enhanced returns if copper prices go up, but also magnify losses if copper prices fall. PULS is a high-risk, high-reward ETF that could be an attractive choice for aggressive investors seeking a leveraged bet on copper.

5. Invesco DB Base Metals Fund (DBB)

Invesco DB Base Metals Fund (DBB) delivers broad exposure to base metals including copper, aluminum, and zinc through futures contracts. It does not exclusively focus on copper but its substantial allocation to copper futures makes it relevant for investors seeking copper exposure. DBB also offers a cost-effective way for investors to access the metals market without needing to own and store physical metals or maintain a futures account.

6. Amplify Advanced Battery Metals and Materials ETF (BATT)

Though not strictly focused on copper, Amplify Advanced Battery Metals and Materials ETF (BATT) offers indirect exposure to copper through its investments in lithium, cobalt, nickel, manganese, and graphite companies – all key components in the production of advanced batteries. In relation to copper, the fund invests in companies that mine and produce the metal for use in advanced battery technologies. This can potentially lead to increased demand for copper in the coming years as the use of electric vehicles and energy storage devices grow, making BATT a compelling long-term investment option.

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