We cover the short list of best copper ETFs, plus a copper ETN, as measured by 1-year performance through February 28, 2022. See more on performance history, holdings, ratings, and other key details investors need to know about these copper funds.
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Investing in Copper ETFs and Stocks
An investor can buy shares of a copper ETF designed to track the price of copper, less fund expenses. Different copper ETFs may track a copper index by holding copper futures or they may hold stocks of copper mining companies. A copper fund may also be structured as an ETN, or exchange-traded note.
Copper is a soft, reddish-gold metal that has multiple industrial applications, including piping, electrical wiring, air conditioning systems, and car radiators. Copper is also used for the production of certain coin currency. These qualities make copper a versatile commodity and a financial asset that can be used as an investment.
Note: Investors can invest in copper either directly or indirectly. An example of a direct investment in copper is through the purchase of physical copper. Examples of indirect investments in copper are copper ETFs or ETNs that track the price of copper, stocks of copper mining companies, copper futures, and ETFs that hold copper miner stocks.
Evaluating Copper ETFs
While there are many commodity ETFs and natural resources ETFs that include copper or copper miners in their holdings, there are only two ETFs and one ETN that focus directly on copper. When evaluating a copper ETF, it's important to review more than just performance and consider other factors, such as expenses, structure, and holdings.
Some of the selection criteria used for evaluating copper ETFs are:
- Performance: 1-year return is the primary selection criteria for evaluating performance on our list of top copper ETFs. However, investors are wise to also review longer periods, such as 3-, 5-, and 10-year returns before considering the purchase of shares.
- Expenses: When ETFs track the same index or commodity, the one with the lowest expense ratio will typically outperform those with higher expenses. The copper ETFs each have different holdings, so the expenses may be a secondary consideration.
- Structure: There are two US-based copper ETFs. One is structured as a partnership, which is common among ETFs that invest in futures, and the other is structured as open ended investment company, which is the most common ETF structure. Another fund on our list is structured as an ETN, which is structured as an uncollateralized debt instrument.
- Objective: Since the list of copper ETFs is a small one, we included any type of objective that offers investors direct or indirect exposure to copper, either to the commodity itself or as an equity-based copper miner fund.
- Portfolio holdings: Some copper ETFs that seek to track the price of copper don't have holdings like stock or bond mutual funds; they typically hold futures contracts that track the price of a copper benchmark. Copper miner ETFs have equity holdings like other equity-based funds.
- Quant Ratings and Factor Grades: Seeking Alpha’s Quant Ratings and Factor Grades can be used for evaluating stocks or ETFs. In this article, we provide Factor Grades, which rate ETFs by five "factors" - Momentum, Expenses, Dividends, Risk, and Asset Flows. To do this, we compare the relevant metrics for the factor in question for the ETF to the same metrics for the other ETFs in its asset class. The factor is then assigned a grade, from A+ to F.
3 Best-Performing Copper ETFs
| Fund Name (Ticker) | 1-Yr Performance |
| Global X Copper Miners ETF (COPX) | 15.85% |
| United States Copper Index Fund (CPER) | 9.16% |
| iPath Series B Bloomberg Copper Subindex TR ETN (JJC) | 8.51% |
There are two copper ETFs and one copper ETN that trade on the US market and we feature all three funds here. Performance ranking is based upon the 1-year return through February 28, 2022. During this period, the best-performing copper fund was COPX. For consistency, we compare performance to a broad basket commodity index for each fund.
1. Global X Copper Miners ETF (COPX)
- As of date: February 28, 2022
- 1-year performance: 15.85%
- Expense Ratio: 0.65%, or $65 annually for every $10,000 invested
- Annual Dividend Yield: 2.0%
- Three-Month Average Daily Volume: 720k
Global X Copper Miners ETF is an equity-based exchange-traded fund that seeks to provide investment results that correspond generally to the price and yield performance of the Solactive Global Copper Miners Total Return Index.
Global X Copper Miners ETF Performance
| 1-yr | 3-yr | 5-yr | 10-yr | |
| Global X Copper Miners ETF | 15.85 | 26.59 | 14.38 | 0.87 |
| S&P GSCI (Commodity Index) | 46.86 | 10.56 | 7.12 | -4.42 |
| S&P 500 Index | 16.39 | 18.24 | 15.17 | 14.59 |
COPX significantly underperforms the broad basket commodity index, and falls just shy of the U.S. equity index, S&P 500, for the 1-year return. However, COPX strongly outperforms commodities for longer period returns. while results are mixed compared to the S&P 500 for 3 years and beyond.
Here is where a $10,000 investment in COPX, 1 year, 3 years, 5 years, and 10 years ago, would be as of February 28, 2022:
- 1 year ago: $11,585
- 3 years ago: $20,286
- 5 years ago: $19,577
- 10 years ago: $10,905
Global X Copper Miners ETF Structure, Objective & Holdings
- Inception Date: 04/19/2010
- Sponsor: Global X Management Company LLC
- Ticker: COPX
- Primary exchange: NYSE Arca
- Structure: Open Ended Investment Company
- Objective: Seeks to track the performance of an index of copper miners.
- Holdings: 39 stocks of global companies that are involved in copper mining and processing.
Seeking Alpha Quant Rating Grades: COPX ETF
| Momentum | Expenses | Dividends | Risk | Asset Flows |
| A | D | C- | D | A |
2. United States Copper Index Fund (CPER)
- As of date: February 28, 2022
- 1-year performance: 9.16%
- Expense Ratio: 0.80%, or $80 annually for every $10,000 invested
- Annual Dividend Yield: None
- Three-Month Average Daily Volume: 166k
The United States Copper Index Fund is an exchange-traded fund that seeks to track the daily changes in percentage terms of the SummerHaven Copper Index Total Return, less CPER’s expenses. To achieve its objective CPER holds copper index futures.
United States Copper Index Fund Performance
| 1-yr | 3.yr | 5-yr | 10-yr | |
| United States Copper Index Fund | 9.16 | 14.18 | 9.27 | 0.06 |
| S&P GSCI (Commodity Index) | 46.86 | 10.56 | 7.12 | -4.42 |
| S&P 500 Index | 16.39 | 18.24 | 15.17 | 14.59 |
Like other copper ETFs, the CPER ETF lags the broad basket commodity index, as well as the S&P 500 index, for the 1-year return, ending February 28, 2022. However, it leads the commodity index for longer periods, yet still lags the S&P for returns 3 years or longer.
Here is where a $10,000 investment in CPER, 1 year, 3 years, 5 years, and 10 years ago, would be as of February 28, 2022:
- 1 year ago: $10,916
- 3 years ago: $14,886
- 5 years ago: $15,578
- 10 years ago: $10,060
United States Copper Index Fund Structure, Objective & Holdings
- Inception Date: 11/14/2011
- Sponsor: United States Commodity Funds LLC
- Ticker: CPER
- Primary exchange: NYSE Arca
- Structure: Partnership
- Objective: Track the daily changes in percentage terms of copper index.
- Holdings: Copper index futures.
Seeking Alpha Quant Rating Grades: CPER ETF
| Momentum | Expenses | Dividends | Risk | Asset Flows |
| F+ | D+ | - | C- | F |
3. iPath Series B Bloomberg Copper Subindex ETN (JJC)
- As of date: February 28, 2022
- 1-year performance: 8.51%
- Expense Ratio: 0.45%, or $45 annually for every $10,000 invested
- Annual Dividend Yield: None
- Three-Month Average Daily Volume: 56k
The iPath Series B Bloomberg Copper Subindex Total Return ETN is designed to provide exposure to the Bloomberg Copper Subindex Total Return. ETNs are unsecured debt obligations of the issuer, Barclays Bank PLC. The Index reflects the returns that are potentially available through an unleveraged investment in the futures contracts on copper.
iPath Series B Bloomberg Copper Subindex ETN Performance
| 1-yr | 3.yr | 5-yr | 10-yr | |
| iPath Series B Bloomberg Copper Subindex ETN | 8.51 | 13.81 | NA | NA |
| S&P GSCI (Commodity Index) | 46.86 | 10.56 | 7.12 | -4.42 |
| S&P 500 Index | 16.39 | 18.24 | 15.17 | 14.59 |
The JJC ETN underperforms the broad basket commodity index and the S&P 500 index for the 1-year return ending February 28, 2022. However, JJC beats commodities for the 3-year, while under-performing the S&P. JJC does not have a performance record for 5 years or beyond.
Here is where a $10,000 investment in JJC, 1 year and 3 years ago, would be as of February 28, 2022:
- 1 year ago: $10,851
- 3 years ago: $14,741
iPath Series B Bloomberg Copper Subindex ETN Structure, Objective & Holding
- Inception Date: 01/17/2018
- Sponsor: Barclays Bank PLC
- Ticker: JJC
- Primary exchange: NYSE Arca
- Structure: Uncollateralized Debt Instrument - ETN
- Objective: To provide exposure to the Bloomberg Copper Subindex Total Return.
- Holdings: Copper futures
Note: Seeking Alpha Quant Ratings do not cover ETNs.
Bottom Line
There are two copper ETFs and one copper ETN that are traded on US markets. A copper ETF may hold copper futures or stocks of copper mining companies, while a copper ETN is an uncollateralized debt instrument that may hold copper futures. Investors should study the benefits and risks of copper funds before considering an investment.