What Is a Copper ETF?


Quick Answer

A copper ETF is an exchange-traded fund whose shares represent underlying contracts of copper futures. It is designed to mimic the performance of the underlying index, and some copper ETFs may include other metals such as aluminium and zinc. The first copper ETF was the UBS iPath Copper Fund.

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Full Answer

The structure of an ETF is the key determinant of the returns it generates for investors. Before investing in an ETF, the investor should thoroughly analyze its structure and its associated benefits. An advantage of a true ETF is tax efficiency, as it does not incur significant capital gains tax during its operation. Many ETFs are used as a dividend-oriented investing strategy.

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