A few tidbits that we found interested that were supplied to us by the issuer of CPER, is that since 1970, copper has a negative correlation to the U.S. Dollar (which likely at least partially explains the recent weakness) and has a strong positive correlation to Industrial Production.
Additionally, strong performance from copper is typically seen in periods of Economic Expansion, and thus since this environment is generally “good” for the equity markets as well, some observers will note that equities and copper move together to some degree.
Since the inception of JJC back in 2007, it is down 16.23% with the S&P 500 Index down 14% during this same time frame.
Of course, there is limited trading history available here for JJC, and even less for CPER being a newer fund, however conceptually it would make sense to most that as the global economy is prospering and countries and institutions (private or public) are investing in infrastructure, Copper prices should participate on the upside.
U.S. Copper Fund
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