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

NEAR Makes Notable Cross Below Critical Moving Average
Mon, May 2, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the iShares Short Maturity Bond ETF (NEAR) crossed below ...

Mallinckrodt Moves Up In Analyst Rankings, Passing Newell Brands
Mon, May 2, 11:54 AM ET, by ETF Channel

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

VBK: Large Outflows Detected at ETF
Mon, May 2, 11:14 AM ET, by ETF Channel

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

18.5% of MORT Holdings Seeing Recent Insider Buys
Mon, May 2, 9:44 AM ET, by ETF Channel

A look at the weighted underlying holdings of the Mortgage REIT Income ETF (MORT) shows ...

10.6% of DIA Holdings Seeing Recent Insider Buys
Mon, May 2, 9:34 AM ET, by ETF Channel

A look at the weighted underlying holdings of the SPDR Dow Jones Industrial Average ETF ...

Red Hat Moves Up In Analyst Rankings, Passing Invesco
Fri, Apr 29, 11:54 AM ET, by ETF Channel

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

QQQ, QCOM, TXN, AVGO: ETF Outflow Alert
Fri, Apr 29, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: QQQ, QCOM, TXN, AVGO Exchange traded funds (ETFs) trade just ...

IWD, CSCO, MDT, UTX: ETF Outflow Alert
Fri, Apr 29, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IWD, CSCO, MDT, UTX Exchange traded funds (ETFs) trade just ...

iShares Asia 50 (AIA) Shares Cross Below 200 DMA
Fri, Apr 29, 11:14 AM ET, by ETF Channel

In trading on Friday, shares of the iShares Asia 50 ETF (AIA) crossed below their ...

XLK Crosses Below Key Moving Average Level
Fri, Apr 29, 11:14 AM ET, by ETF Channel

In trading on Friday, shares of the Technology Select Sector SPDR Fund ETF (XLK) crossed ...

EZU: Large Outflows Detected at ETF
Fri, Apr 29, 11:14 AM ET, by ETF Channel

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

MLP and Energy Infrastructure ETF -- Insider Buying Index Registering 24.5%
Fri, Apr 29, 9:44 AM ET, by ETF Channel

A look at the weighted underlying holdings of the MLP and Energy Infrastructure ETF (MLPX) ...

DUST Crosses Critical Technical Indicator
Thu, Apr 28, 3:54 PM ET, by ETF Channel

In trading on Thursday, shares of the Daily Gold Miners Index Bear 3x Shares ETF ...

Nielsen Holdings Takes Over #15 Spot From Facebook
Thu, Apr 28, 11:54 AM ET, by ETF Channel

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

IGE, OXY, COP, SU: ETF Outflow Alert
Thu, Apr 28, 11:14 AM ET, by ETF Channel

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

SUB: Large Outflows Detected at ETF
Thu, Apr 28, 11:14 AM ET, by ETF Channel

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

TLO: ETF Outflow Alert
Thu, Apr 28, 11:14 AM ET, by ETF Channel

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

XLY, CMCSA, NKE, LOW: ETF Outflow Alert
Thu, Apr 28, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: XLY, CMCSA, NKE, LOW Exchange traded funds (ETFs) trade just ...

VDE, PAGP, EEQ, TEP: Large Outflows Detected at ETF
Thu, Apr 28, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VDE, PAGP, EEQ, TEP Exchange traded funds (ETFs) trade just ...

IWV, GOOGL, GOOG, V: ETF Outflow Alert
Thu, Apr 28, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IWV, GOOGL, GOOG, V Exchange traded funds (ETFs) trade just ...

iShares MSCI Brazil Capped ETF Experiences Big Inflow
Thu, Apr 28, 10:54 AM ET, by ETF Channel

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

VB, NCT, RUSHB: ETF Inflow Alert
Thu, Apr 28, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: VB, NCT, RUSHB Exchange traded funds (ETFs) trade just like ...

REM's Holdings Imply 11% Gain Potential
Thu, Apr 28, 8:44 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

SPDR Barclays Short Term High Yield Bond Breaks Above 200-Day Moving Average - Bullish for SJNK
Wed, Apr 27, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the SPDR Barclays Short Term High Yield Bond ETF ...

ProShares Short VIX Short-Term Futures Breaks Above 200-Day Moving Average - Bullish for SVXY
Wed, Apr 27, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the ProShares Short VIX Short-Term Futures ETF (SVXY) crossed ...

iShares Russell 2000 Growth (IWO) Shares Cross Above 200 DMA
Wed, Apr 27, 3:54 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares Russell 2000 Growth ETF (IWO) crossed above ...

VOE: ETF Outflow Alert
Wed, Apr 27, 11:14 AM ET, by ETF Channel

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

iShares U.S. Pharmaceuticals ETF Experiences Big Outflow
Wed, Apr 27, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IHE, BMY, LLY, AGN Exchange traded funds (ETFs) trade just ...

TLH: Large Outflows Detected at ETF
Wed, Apr 27, 10:54 AM ET, by ETF Channel

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

iShares Morningstar Large-Cap Growth (JKE) Shares Cross Below 200 DMA
Wed, Apr 27, 10:54 AM ET, by ETF Channel

In trading on Wednesday, shares of the iShares Morningstar Large-Cap Growth ETF (JKE) crossed below ...

JNK: Large Outflows Detected at ETF
Wed, Apr 27, 10:54 AM ET, by ETF Channel

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

SPDR Barclays High Yield Bond (JNK) Shares Cross Above 200 DMA
Wed, Apr 27, 10:54 AM ET, by ETF Channel

In trading on Wednesday, shares of the SPDR Barclays High Yield Bond ETF (JNK) crossed ...

WisdomTree SmallCap Dividend Fund -- Insider Buying Index Registering 18.0%
Wed, Apr 27, 9:44 AM ET, by ETF Channel

A look at the weighted underlying holdings of the WisdomTree SmallCap Dividend Fund (DES) shows ...

17.9% of FYT Holdings Seeing Recent Insider Buys
Wed, Apr 27, 9:44 AM ET, by ETF Channel

A look at the weighted underlying holdings of the First Trust Small Cap Value AlphaDEX ...

FPX's Holdings Could Mean 14% Gain Potential
Wed, Apr 27, 8:14 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

Implied RZG Analyst Target Price: $91
Wed, Apr 27, 8:14 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

FAZ Crowded With Sellers
Tue, Apr 26, 4:19 PM ET, by ETF Channel

In trading on Tuesday, shares of the Daily Financial Bear 3x Shares ETF (FAZ) entered ...

See How Boeing Ranks Among Analysts' Top Dow 30 Picks
Tue, Apr 26, 11:54 AM ET, by ETF Channel

A study of analyst recommendations at the major brokerages shows that Boeing Co. (BA) is ...

PG&E Takes Over #62 Spot From Constellation Brands
Tue, Apr 26, 11:54 AM ET, by ETF Channel

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

XHB, WHR, FBHS, OC: Large Outflows Detected at ETF
Tue, Apr 26, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: XHB, WHR, FBHS, OC Exchange traded funds (ETFs) trade just ...

XME, CLF, CDE, HL: Large Outflows Detected at ETF
Tue, Apr 26, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: XME, CLF, CDE, HL Exchange traded funds (ETFs) trade just ...

Analysts See 52% Gains Ahead For XBI
Tue, Apr 26, 8:54 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

FXL's Holdings Could Mean 11% Gain Potential
Tue, Apr 26, 8:54 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

We Did The Math RZV Can Go To $65
Tue, Apr 26, 8:54 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

Implied ADRA Analyst Target Price: $32
Tue, Apr 26, 8:54 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

Genuine Parts a Top Socially Responsible Dividend Stock With 2.7% Yield (GPC)
Tue, Apr 26, 8:34 AM ET, by ETF Channel

Genuine Parts Co. (GPC) has been named a Top Socially Responsible Dividend Stock by Dividend ...

McKesson Achieves #90 Analyst Rank, Surpassing Marathon Petroleum
Mon, Apr 25, 12:14 PM ET, by ETF Channel

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

GDX, ABX, NEM, GG: ETF Outflow Alert
Mon, Apr 25, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: GDX, ABX, NEM, GG Exchange traded funds (ETFs) trade just ...

IWR, LUV, AON, ICE: Large Outflows Detected at ETF
Mon, Apr 25, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IWR, LUV, AON, ICE Exchange traded funds (ETFs) trade just ...

EUM: Large Outflows Detected at ETF
Mon, Apr 25, 11:14 AM ET, by ETF Channel

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

  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 - 2016, 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.