ETF Spotlight on iPath DJ AIG Copper Total Return Sub-Index ETN (NYSEArca: JJC), part of a weekly series.
Assets: $141 million
Objective: JJC tracks the Dow Jones-AIG Copper Total Return Sub-Index, which is designed to reflect the performance on copper contracts. The index is made up of Copper High Grade futures traded on the New York Commodities Exchange. (5 ETFs for a global recovery).
What You Should Know
- JJC has a 0.75% expense ratio
- JJC is an exchange traded note (ETN), which means that it’s a debt instrument backed by the credit of the issuer
- With ETNs, you are taxed only upon sale; Short-term capital gains rates apply if held for less than one year; long-term capital gains rates apply if held for more than one year
- ETNs have no tracking error – this risk is borne by the issuer, not the investor
The Latest News
- Copper prices rallied to a 14-month high today, thanks to a weakening dollar and economic expansion in both emerging and developed markets (Will copper ETN be hit?)
- Copper’s record of $8,490 was reached in July 2008; today, they’re around $7,100
- The price of copper is on pace to have its biggest annual gain since 1978
- Copper made up 54% of the total value of Chile’s exports in October, up from 42% the same time last year
- JJC is up 124.7% year-to-date
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.