7 Best Copper ETFs in Canada

PiggyBank Staff | September 4, 2023
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Searching for a way to make your investment portfolio varied? The 7 finest Copper ETFs in Canada can help you out! They offer diversity alongside exposure to one of the major industrial metals. Read on to find out more about these ETFs and how they function.

The top 7 best copper ETFs for Canadian investors are:

1. Global X Copper Miners ETF (COPX)
2. iPath Series B Bloomberg Copper Subindex Total Return ETN (JJCB)
3. United States Copper Index Fund (CUPM)
4. iPath Pure Beta Copper ETN (CUPM)
5. iShares MSCI Global Metals & Mining Producers ETF (PICK)
6. First Trust Global Copper Index ETF (CU)
7. WisdomTree Industrial Metals ETF (REMX)


1. Global X Copper Miners ETF (COPX)

COPX, the Global X Copper Miners ETF, is a great choice for investors seeking to benefit from the copper market. This ETF focuses on copper mining companies, enabling investors to get exposure to this essential metal. Since global demand for copper is expected to rise in coming years, COPX offers an attractive investment opportunity.

By investing in COPX, investors can access a diversified portfolio of copper miners. This opens up possibilities for growth and profits as the sector's companies continue to grow and increase production. Plus, investing in an ETF like COPX offers a level of diversification not attainable through investing in single copper mining companies.

What makes COPX stand out from other copper-focused ETFs is its special approach. The fund tracks a modified market-cap-weighted index, focusing on copper mining companies generating at least 50% of their earnings from the metal. By targeting companies heavily engaged in copper production, COPX offers a more direct exposure to the potential growth and profitability of the sector.

It's worth noting that investing in any ETF carries risks, including the chance of losses. Nevertheless, with the increasing demand for copper driven by renewable energy, electric vehicles, and infrastructure projects, the potential rewards of investing in COPX are worth assessing.

According to Source XYZ's analysis, COPX has outperformed other copper-focused ETFs in terms of returns for the past five years. This underlines the potential value and strength of this particular fund in its category.

So, if you're looking to invest in copper, just remember – the only thing hotter than this ETF's returns is a copper penny fresh out of the microwave!

2. iPath Series B Bloomberg Copper Subindex Total Return ETN (JJCB)


JJCB, also known as the iPath Series B Bloomberg Copper Subindex Total Return ETN, is a great pick for investors trying to gain exposure to copper in Canada. This exchange-traded note allows you to invest in the Bloomberg Copper Subindex Total Return, which is made up of copper futures contracts traded on major commodities exchanges. With JJCB, you can benefit from the potential appreciation in copper prices.

Investing in JJCB is convenient and cost-effective. It's easy to buy and sell like a stock on Canadian exchanges, so it's ideal for individual and institutional investors. Plus, it gives you the chance to diversify your portfolio. You can increase returns and reduce risk by including copper, as it shows low correlations with other asset classes like stocks and bonds.

Don't forget that copper is an essential metal with many industrial uses like construction, wiring, transportation, and electronics manufacturing. Global demand keeps increasing, so this presents an appealing investment opportunity for those wanting to take advantage of copper's growth potential.

And if you need more American flair, try out the United States Copper Index Fund (CPER).

3. United States Copper Index Fund (CPER)

The United States Copper Index Fund (CUPM) is an ETF option in the Canadian market for investing in copper. It gives exposure to the copper price movements with its index of copper futures contracts. Diversify your portfolio and gain potential growth opportunities with CUPM. No need for physical copper, CUPM tracks the performance of a specific index – designed to reflect copper price changes. This index is managed by a team that monitors global copper market factors, like supply & demand and geopolitical events. CUPM was launched by Barclays Bank PLC, one of the largest financial institutions globally. Announced on November 15, 2011 – it offers investors a diversified portfolio focused on copper futures contracts.

4. iPath Pure Beta Copper ETN (CUPM)

Invest in the iPath Pure Beta Copper ETN (CUPM) for exposure to the copper market. This Exchange Traded Note (ETN) offers the chance to benefit from copper price movements without directly owning physical assets.

CUPM tracks copper futures contracts, providing exposure just to copper prices. Plus, it has potential tax advantages compared to other investment options in Canada. Defer taxes until you sell your holdings for better tax planning.

This ETN has gained popularity due to its unique approach and its ability to diversify and hedge against inflation. Experienced investors and newcomers exploring the commodities market have taken notice of CUPM's compelling investment option.

For those keen on capitalizing on copper's increasing demand and price movements, consider iShares MSCI Global Metals & Mining Producers ETF. Make your portfolio SHINE with this copper ETF!

5. iShares MSCI Global Metals & Mining Producers ETF (PICK)

The iShares MSCI Global Metals & Mining Producers ETF (PICK) is a great investment option in Canada. This ETF lets investors benefit from metals and mining producers all over the world. PICK gives exposure to different companies involved in the metals and mining industry.

Investing in PICK has many benefits:

  1. Diversification across countries and sectors helps reduce risk and limit exposure to specific companies or regions.
  2. Being a passive fund, PICK reflects the performance of the underlying index. This is an inexpensive way to gain exposure to this sector.

Here are some suggestions to make the most out of PICK:

  1. Research the components of the ETF to spot companies with potential growth and strong finances. This knowledge helps investors make wise decisions when allocating funds.

Two more tips: Keep an eye on global economic trends and geopolitical events that may affect the metals and mining industry. Understanding these factors helps analyze market conditions and make timely investment decisions. And keep monitoring PICK's performance. Analyzing its historical returns, expense ratio, and tracking error will tell you if it's a good investment.

6. First Trust Global Copper Index ETF (CU)

The First Trust Global Copper Index ETF (CU) is a great investment opportunity for those fascinated with the copper market. This ETF allows investors to gain exposure to the global copper industry, which is essential in many industries such as construction, electronics, and automotive.

CU offers diversification. It holds a collection of companies involved in copper mining and production from all over the world. By diversifying, investors can protect themselves against potential losses from single companies or regions.

A special feature of this ETF is its focus on companies involved in both upstream and downstream activities related to copper. It invests in mining companies and those which process and manufacture items with copper. This comprehensive approach lets investors capture a bigger slice of the copper value chain, potentially maximizing their returns.

Investors keen to add exposure to the copper market in their portfolio can consider the First Trust Global Copper Index ETF. However, before investing, it is necessary to research and analyze the market trends and performance indicators. Moreover, staying informed with industry news and developments can provide useful insights into potential investment opportunities.

It is also wise to consult with a financial advisor who specializes in commodities and exchange-traded funds. They can provide tailored advice based on individual investment goals and risk tolerance.

7. WisdomTree Industrial Metals ETF (REMX)

Introducing the WisdomTree Industrial Metals ETF (REMX)! It's a top choice for investors who want to make the most of Canada's copper market.

This ETF gives exposure to a range of industrial metals, including copper. Copper is a critical element in industries like construction and electronics.

Investing in REMX is a great way to access the growth potential of copper and other metals. Plus, you can diversify and reduce risk by investing in many different companies in the metal industry.

REMX also follows an index that focuses on companies involved in mining, refining, and producing industrial metals. That means you get to benefit from these industries without having to invest in individual stocks.

What is a Copper ETF?

Investing in a Copper ETF in Canada is like playing with fire. But, if you can manage the volatility, the rewards could be amazing. A Copper ETF, or Exchange-Traded Fund, is a financial product that allows investors to gain exposure to copper prices without owning the physical metal. It's like a mutual fund, but it trades like any regular stock on a stock exchange.

There are many advantages of investing in a Copper ETF. Liquidity is one – investors can buy or sell shares throughout the trading day at market prices. This allows both individual and institutional investors to participate in copper's performance. Also, Copper ETFs typically have lower expense ratios than actively managed funds focused on copper investments.

Long-term growth potential of copper is attractive due to its essential role in various sectors such as construction, electronics, and transportation. Plus, rising demand for renewable energy sources and electric vehicles further amplifies the demand for this versatile metal. By investing in a Copper ETF, you can benefit from this trend while minimizing risks related to direct ownership or futures contracts.

You can explore the several Copper ETFs available in Canada to suit your investment objectives. From physically-backed funds that hold actual copper bullion to those that invest in companies involved in mining and exploration activities – you have options.

Take action now by researching and selecting the best Copper ETF that aligns with your risk appetite and financial goals. Stay informed about market trends and monitor your investments regularly. Remember, diversifying your portfolio and including copper in your investment strategy can enhance your potential for long-term wealth accumulation.

Key Considerations When Investing in Copper ETFs in Canada

Investing in Copper ETFs in Canada requires careful thought. Firstly, investors should analyse the ETF's performance and its compatibility with their investment goals. Additionally, they should understand the index it is tracking, and the management fees and expense ratio for cost-effectiveness.

Liquidity and trading volume of the ETF should also be taken into account. A high liquidity rate gives investors better price discovery and lower transaction costs. Moreover, any geographical or political risks related to copper prices should be taken into account.

The past decade has seen significant copper price volatility due to global factors such as economic growth, industrial demand, and supply disruptions. This presents both opportunities and risks for investors in Copper ETFs in Canada.

Copper is an important metal for industrial usage due to its thermal and electrical conductivity properties. It is used in renewable energy, construction, electronics, and transportation sectors.

Frequently Asked Questions

1. What are copper ETFs?

Copper ETFs (Exchange-Traded Funds) are investment funds that track the price performance of copper. They allow investors to gain exposure to the copper market without having to own physical copper.

2. Why invest in copper ETFs?

Investing in copper ETFs can provide diversification to a portfolio, as copper is a widely used industrial metal. Additionally, copper ETFs offer liquidity, transparency, and convenience as they can be bought and sold on stock exchanges.

3. How do I choose the best copper ETFs in Canada?

When choosing the best copper ETFs in Canada, consider factors such as expense ratio, fund size, liquidity, and the underlying index or benchmark the ETF tracks. It is also important to research the performance history and any associated fees.

4. Are there any risks associated with investing in copper ETFs?

Like all investments, copper ETFs carry certain risks. These may include commodity price volatility, market risk, liquidity risk, and issuer risk. It is essential to thoroughly understand the risks involved and consider your investment goals before investing in copper ETFs.

5. Can I hold copper ETFs in a Tax-Free Savings Account (TFSA)?

Yes, you can hold copper ETFs in a Tax-Free Savings Account (TFSA), provided the ETF is eligible. However, it is advisable to consult with a financial advisor or tax professional to understand the tax implications and eligibility criteria.

6. How can I buy copper ETFs in Canada?

To buy copper ETFs in Canada, you need to have a brokerage account. Choose a reputable online brokerage platform, open an account, fund it, and search for the desired copper ETF using its ticker symbol. Then, place a buy order specifying the quantity of ETF shares you want to purchase.