Continuing Copper Rally Speaks Highly for 'CPER' ETF | ETF Trends

It’s been almost a month since last checking in on the current copper ETF rally with the outlook continuing to look bright. While the economy is still in need of a lift via stimulus, investors can find many opportunities in the strong demand for metals and raw materials.

Looking specifically at the United States Copper Index Fund (NYSEARCA: CPER), this ETF has returned more than 37% in the past year and is up over 16% in the past three months. It is currently at its highest price point in some time at nearly $23. Investors looking to have commodity exposure without relying on commodity futures account may want to keep an eye on CPER.

As the most actively traded copper futures are 2% higher so far in 2021 and near their highest level since early 2013, it’s important to note copper markets have strengthened on strong demand from China and India and bets that the improving global economy will support the consumption of raw materials later this year.

In particular, copper is at the heart of the electric vehicle revolution and serves as an essential component in economic activity for the modern technological society. The demand will continue to stay healthy when it comes to infrastructure development in major countries, as the global trend towards cleaner energy will support copper.

CPER Chart

CPER data by YCharts

For CPER, the investment objective is for the daily changes in percentage terms of its shares’ per share net asset value (NAV) to reflect the daily changes in percentage terms of the SummerHaven Copper Index Total Return, less CPER’s expenses. CPER is designed to be a convenient, cost-effective way for investors to access the returns of a portfolio of copper futures contracts.

The portfolio consists of listed copper futures contracts and other copper-related futures and may consist of forwards and swap contracts. These investments will be collateralized by cash, cash equivalents, and US government obligations with remaining maturities of two years or less.

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