The two firms first proposed a physical copper ETF back in 2010 when copper prices were touching record highs on surging Chinese demand. Currently, supply is outpacing demand, and prices are down for a second year.

The proposed copper ETFs would be backed by copper stores like similar precious metals ETFs – sponsors would hold physical stores in a warehouse or essentially remove a chunk of global copper supply. Additionally, a copper ETF’s fees may be higher due to the costs associated with storing a large inventory of the red metal.

Investors, though, can still gain exposure to copper futures through the exchange traded note, iPath DJ-UBS Copper TR Sub-Index ETN (NYSEArca: JJC). JJC is up 5.6% over the past three months but is down 12.5% year-to-date.

For more information on copper, visit our copper category.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.