JP Morgan filed with the Securities and Exchange Commission to launch a new copper focused exchange traded fund (ETF).The soaring demand for copper has provider JP Morgan filing to launch the J.P. Morgan Physical Copper Trust. Warehousing firm, Henry Bath Group, will hold the copper in its facilities scattered around the world and handle transfers in and out of storage, says Joe Morris for Ignites. [The Latest Filings from PowerShares.]
Copper prices have surged about 40% since June, reaching $8,423 in the most recent trading and the demand is expected to continue into next year, according to the two largest copper producers. Steve Dew and Oliver Ludwig for Index Universe report that JPMorgan’s proposed fund promises to give investors exposure to the spot price of copper, a material that is in increasing demand as emerging market countries, such as China, develop infrastructure. [A Previous Metals Basket Is On The Way.]
Keep in mind that copper is an earmark for the health of the economy and it is used in various instances, such as telecommunications and energy transmission.The proposed fund is going to give investors physical exposure to the metal.
Current ETFs that focus on copper include:
- First Trust ISE Global Copper (NASDAQ: CU)
- Global X Copper Miners ETF (NYSEArca: COPX)
- iPath DJ-UBS Copper (NYSEArca: JJC)
Tisha Guerrero contributed to this article.
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.