Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  
Topics:ChinaETFsEarningsEconomyEnergyForexGoldIncomeLessonsIdeasTrading

  • Other news: News from PR Newswire
| More

ETFs For Rising Copper Prices

Fri, Mar 23, 9:15 AM ET, by Michael Johnston

With equity markets on a winning streak, many investors have brushed aside the commodity asset class as it has lagged behind in the new year. Nonetheless, this corner of the market remains abundant with opportunities and the potential to deliver impressive gains for those with a keen eye and a stomach for risk. Industrial metals, and copper in particular, have attracted interest lately as global economic growth expectations have begun to improve thanks to encouraging developments in the U.S. coupled with evaporating uncertainties in Europe [see also 12 High-Yielding Commodities For 2012].

Copper prices have faced headwinds lately as concerns of slowing growth in China have spooked many investors into jumping ship from the industrial metals altogether. While China is the biggest producer and consumer of copper, some experts feel that these growth concerns may be a bit overblown. The shiny metal is one of the most versatile commodities across developed and emerging markets alike thanks to its widespread uses in manufacturing, electronics, and construction [see 13 Ways To Invest In Copper].

Copper ETFs In Focus

In a recent MoneyMorning.com article, author Michael Adams outlined his bullish outlook on copper prices along with three viable securities that could offer investors a way to tap into rising prices. The author cites that mining companies will need to ramp up production in order to meet growing global demand, which could benefit commodity producers and put upward pressure on prices. While investments in individual mining companies is certainly an option, some investors may wish to favorably position themselves with an ETF instead [see Copper ETFs: 5 Ways To Play].

Below we highlight the available equity ETFs offering exposure to copper:

  • First Trust ISE Global Copper Index (CU): This ETF offers indirect access to copper prices by offering investors exposure to companies that are active in the copper mining industry. CU has attracted nearly $58 million in assets under management although its underlying basket is far from a pure play; CU’s portfolio includes a number of large, broad-based mining companies whose operation also focus on gold, silver, and other metals.
  • Global X Copper Miners (COPX): This ETF is less popular than CU, with only $36 million in assets under management, although its strategy is more compelling. COPX invests solely in “pure play” copper miners that concentrate exclusively on that metal, unlike CU which features exposure to other metals as well. This ETF is also 5 basis points cheaper than CU, which further increases the appeal to cost conscious investors.

More experienced investors looking to make a play on spot prices also have a number of options to choose from:

  • iPath Dow Jones Copper Total Return Sub-Index ETN (JJC): This is the oldest and biggest offering in the space with nearly $237 million in assets under management. JCC is an ETN comprised of single month futures contracts on copper which means that investors are exposed to the potential credit risks inherent for all ETNs as well as the futures-based strategy drawbacks related to contango [see also Understanding Contango Through Natural Gas Futures].
  • United States Copper Index (CPER): This futures-based product is structured as a publicly-traded limited partnership, which eliminates the fund's exposure to the credit risks inherent in the ETN structures. This ETP further distinguishes itself from JJC by using quantitative measures based on observable market prices at the end of each month to select its futures contracts in an effort to minimize the potentially adverse impacts of contango.
  • iPath Pure Beta Copper (CUPM): This ETN separates itself from JJC by empolying a unique “Pure Beta” methodology which gives the fund flexibility to "roll" exposure into a number of different contract months. While CUPM does strive to mitigate the impacts of contango, it still exposes investors to the credit risk of the issuing institution given its product structure.

[For more ETF analysis, make sure to sign up for our free ETF newsletter or try a free seven day trial to ETFdb Pro]

Disclosure: No positions at time of writing.


SDI Glossary: "Beta" Definition
SDI Glossary: "Commodities" Definition
SDI Glossary: "price" Definition
SDI Glossary: "ETFs" Definition
SDI Glossary: "Futures" Definition
SDI Glossary: "Money" Definition
SDI Glossary: "Yield" Definition
This Article's Word Cloud:   CUPM   Copper   ETFs   Global   Index   Pure   This   Ways   While   also   although   assets   attracted   author   based   commodity   companies   concerns   contango   contracts   copper   credit   exposure   from   further   futures   global   growth   have   into   investors   itself   management   many   market   metals   million   mining   month   number   offering   other   play   prices   product   risk   that   under   which   with

| More

HanesBrands Takes Over #26 Spot From Prologis
Tue, Aug 4, 11:54 AM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

iShares 20+ Year Treasury Bond ETF Experiences Big Outflow
Tue, Aug 4, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: TLT Exchange traded funds (ETFs) trade just like stocks, but ...

VDC, PEP, WMT, MDLZ: ETF Inflow Alert
Tue, Aug 4, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VDC, PEP, WMT, MDLZ Exchange traded funds (ETFs) trade just ...

IYT: ETF Inflow Alert
Tue, Aug 4, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IYT Exchange traded funds (ETFs) trade just like stocks, but ...

EFAV: Large Inflows Detected at ETF
Tue, Aug 4, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: EFAV Exchange traded funds (ETFs) trade just like stocks, but ...

FXH, DXCM, HNT, ABC: ETF Inflow Alert
Tue, Aug 4, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: FXH, DXCM, HNT, ABC Exchange traded funds (ETFs) trade just ...

AAIT Crowded With Sellers
Tue, Aug 4, 11:14 AM ET, by ETF Channel

In trading on Tuesday, shares of the iShares MSCI All Country Asia Information Technology ETF ...

SPDR S&P Semiconductor Getting Very Oversold
Tue, Aug 4, 11:14 AM ET, by ETF Channel

In trading on Tuesday, shares of the SPDR S&P Semiconductor ETF (XSD) entered into oversold ...

TAN Crosses Critical Technical Indicator
Tue, Aug 4, 11:14 AM ET, by ETF Channel

In trading on Tuesday, shares of the Guggenheim Solar ETF (TAN) entered into oversold territory, ...

SPDR S&P Dividend ETF Experiences Big Outflow
Tue, Aug 4, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: SDY, T, HCP, PBCT Exchange traded funds (ETFs) trade just ...

IWV: ETF Outflow Alert
Tue, Aug 4, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: IWV Exchange traded funds (ETFs) trade just like stocks, but ...

CRED: ETF Outflow Alert
Tue, Aug 4, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: CRED Exchange traded funds (ETFs) trade just like stocks, but ...

Why International Business Machines is a Top 25 Dividend Giant (IBM)
Tue, Aug 4, 8:14 AM ET, by ETF Channel

International Business Machines Corp. (IBM) has been named as a Top 25 ''Dividend Giant'' by ...

International Business Machines a Top Socially Responsible Dividend Stock With 3.3% Yield (IBM)
Tue, Aug 4, 8:14 AM ET, by ETF Channel

International Business Machines Corp. (IBM) has been named a Top Socially Responsible Dividend Stock by ...

Vanguard Energy (VDE) Enters Oversold Territory
Mon, Aug 3, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the Vanguard Energy ETF (VDE) entered into oversold territory, ...

XLE Crosses Critical Technical Indicator
Mon, Aug 3, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the Energy Select Sector SPDR Fund ETF (XLE) entered ...

Daily Energy Bull 3x Shares (ERX) Enters Oversold Territory
Mon, Aug 3, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the Daily Energy Bull 3x Shares ETF (ERX) entered ...

NASDAQ China Technology (QQQC) Enters Oversold Territory
Mon, Aug 3, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the NASDAQ China Technology ETF (QQQC) entered into oversold ...

Shares of DIG Now Oversold
Mon, Aug 3, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the ProShares Ultra Oil & Gas ETF (DIG) entered ...

IEO Crowded With Sellers
Mon, Aug 3, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the iShares U.S. Oil & Gas Exploration & Production ...

See How Intel Ranks Among Analysts' Top Dow 30 Picks
Mon, Aug 3, 12:14 PM ET, by ETF Channel

A study of analyst recommendations at the major brokerages shows that Intel Corp (INTC) is ...

PepsiCo Achieves #51 Analyst Rank, Surpassing Salesforce.com
Mon, Aug 3, 12:14 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

Shares of JNUG Now Oversold
Mon, Aug 3, 11:14 AM ET, by ETF Channel

In trading on Monday, shares of the Daily Junior Gold Miners Index Bull 3x Shares ...

LQD: ETF Inflow Alert
Mon, Aug 3, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: LQD Exchange traded funds (ETFs) trade just like stocks, but ...

IWN: Large Outflows Detected at ETF
Mon, Aug 3, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IWN Exchange traded funds (ETFs) trade just like stocks, but ...

XLF, BRK.B, C, AIG: ETF Outflow Alert
Mon, Aug 3, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: XLF, BRK.B, C, AIG Exchange traded funds (ETFs) trade just ...

11.4% of XSLV Holdings Seeing Recent Insider Buys
Mon, Aug 3, 10:14 AM ET, by ETF Channel

A look at the weighted underlying holdings of the PowerShares S&P SmallCap Low Volatility Portfolio ...

Why Caterpillar is a Top 25 SAFE Dividend Stock (CAT)
Mon, Aug 3, 8:14 AM ET, by ETF Channel

Caterpillar Inc. (CAT) has been named to the Dividend Channel ''S.A.F.E. ...

Why Intel is a Top Socially Responsible Dividend Stock (INTC)
Mon, Aug 3, 8:14 AM ET, by ETF Channel

Intel Corp (INTC) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, ...

EWS Crosses Critical Technical Indicator
Fri, Jul 31, 4:24 PM ET, by ETF Channel

In trading on Friday, shares of the iShares MSCI Singapore ETF (EWS) entered into oversold ...

CMDT Crosses Critical Technical Indicator
Fri, Jul 31, 4:24 PM ET, by ETF Channel

In trading on Friday, shares of the iShares Commodity Optimized Trust ETF (CMDT) entered into ...

COMT Crosses Critical Technical Indicator
Fri, Jul 31, 4:24 PM ET, by ETF Channel

In trading on Friday, shares of the iShares Commodities Select Strategy ETF (COMT) entered into ...

FMF Crosses Above Key Moving Average Level
Fri, Jul 31, 4:24 PM ET, by ETF Channel

In trading on Friday, shares of the First Trust Morningstar Managed Futures Strategy Fund ETF ...

CGW Crosses Above Key Moving Average Level
Fri, Jul 31, 11:14 AM ET, by ETF Channel

In trading on Friday, shares of the Guggenheim S&P Global Water Index ETF (CGW) crossed ...

VGIT Crosses Above Key Moving Average Level
Fri, Jul 31, 11:14 AM ET, by ETF Channel

In trading on Friday, shares of the Vanguard Intermediate-Term Government Bond ETF (VGIT) crossed above ...

Vanguard Short-Term Bond (BSV) Shares Cross Above 200 DMA
Fri, Jul 31, 10:54 AM ET, by ETF Channel

In trading on Friday, shares of the Vanguard Short-Term Bond ETF (BSV) crossed above their ...

TYD Makes Bullish Cross Above Critical Moving Average
Fri, Jul 31, 10:54 AM ET, by ETF Channel

In trading on Friday, shares of the Daily 7-10 Year Treasury Bull 3x Shares ETF ...

DBO Crowded With Sellers
Fri, Jul 31, 10:54 AM ET, by ETF Channel

In trading on Friday, shares of the PowerShares DB Oil Fund ETF (DBO) entered into ...

VDE, COP, OXY, PSX: ETF Outflow Alert
Fri, Jul 31, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: VDE, COP, OXY, PSX Exchange traded funds (ETFs) trade just ...

AOR Crosses Above Key Moving Average Level
Fri, Jul 31, 10:54 AM ET, by ETF Channel

In trading on Friday, shares of the iShares Core Growth Allocation ETF (AOR) crossed above ...

CIU: ETF Outflow Alert
Fri, Jul 31, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: CIU Exchange traded funds (ETFs) trade just like stocks, but ...

RWX, BAM.A.CA, REI.UN.CA, HR.UN.CA: ETF Inflow Alert
Fri, Jul 31, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: RWX, BAM.A.CA, REI.UN.CA, HR.UN.CA Exchange traded funds (ETFs) trade just ...

15.2% of FRI Holdings Seeing Recent Insider Buys
Fri, Jul 31, 9:34 AM ET, by ETF Channel

A look at the weighted underlying holdings of the First Trust S&P REIT Index Fund ...

HCP Named A Top Socially Responsible Dividend Stock
Fri, Jul 31, 8:14 AM ET, by ETF Channel

HCP, Inc. (HCP) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, ...

BRXX Crowded With Sellers
Thu, Jul 30, 3:54 PM ET, by ETF Channel

In trading on Thursday, shares of the EGShares Brazil Infrastructure ETF (BRXX) entered into oversold ...

IDX Crosses Critical Technical Indicator
Thu, Jul 30, 3:54 PM ET, by ETF Channel

In trading on Thursday, shares of the Indonesia Index ETF (IDX) entered into oversold territory, ...

Shares of DBE Now Oversold
Thu, Jul 30, 3:54 PM ET, by ETF Channel

In trading on Thursday, shares of the PowerShares DB Energy Fund ETF (DBE) entered into ...

Ecolab Achieves #61 Analyst Rank, Surpassing TE Connectivity
Thu, Jul 30, 11:54 AM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

First Trust Germany AlphaDEX Fund (FGM) Shares Cross Below 200 DMA
Thu, Jul 30, 11:34 AM ET, by ETF Channel

In trading on Thursday, shares of the First Trust Germany AlphaDEX Fund ETF (FGM) crossed ...

PDP, STRZA, ORLY, DPZ: Large Inflows Detected at ETF
Thu, Jul 30, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: PDP, STRZA, ORLY, DPZ Exchange traded funds (ETFs) trade just ...

  More articles:  1 2 3 4 5 6 7 next »

ABOUT US »   ADVERTISE »   CONTACT US »   TERMS OF USE & PRIVACY POLICY »

ETFs For Rising Copper Prices | Self Directed Investor | Copyright © 2008 - 2015, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: ValueForum.com -- a subscription-based online social networking forum of serious individual investors. | MarketNewsVideo.com -- videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.