Copper Commodity

Copper commodity ETFs and mutual funds invest the majority of their assets... Copper commodity ETFs and mutual funds invest the majority of their assets in physical copper or copper futures contracts. These funds aim to provide exposure to investors who believe the price of copper is heading higher. Copper commodity ETFs and mutual funds tend to be passively managed. Some copper commodity funds invest in the physical metal itself. These funds store metal in secure vaults on behalf of investors. Other copper commodity funds only own copper futures contracts. These are derivatives that are tied to the price of copper. Copper futures usually move in lockstep with the price of physical copper, but there can be times when it’s more profitable to own futures than physical, and vice versa. Investors are attracted to copper because it’s a base metal that may do well when economic growth is strong. Copper is used in wiring, in pipes, and is increasingly touted as key to electric vehicles. The copper market is one of the largest base metals markets. However, investor purchases and sales of copper can still have a large impact on the price. Moreover, the metal has historically been prone to price manipulation by large players. Accordingly, these are only appropriate for investors willing to take on considerable risk. Last Updated: 11/27/2024 View more View less

Copper commodity ETFs and mutual funds invest the majority of their assets in physical copper or copper futures contracts. These funds aim to provide exposure to investors who believe the price of copper... Copper commodity ETFs and mutual funds invest the majority of their assets in physical copper or copper futures contracts. These funds aim to provide exposure to investors who believe the price of copper is heading higher. Copper commodity ETFs and mutual funds tend to be passively managed. Some copper commodity funds invest in the physical metal itself. These funds store metal in secure vaults on behalf of investors. Other copper commodity funds only own copper futures contracts. These are derivatives that are tied to the price of copper. Copper futures usually move in lockstep with the price of physical copper, but there can be times when it’s more profitable to own futures than physical, and vice versa. Investors are attracted to copper because it’s a base metal that may do well when economic growth is strong. Copper is used in wiring, in pipes, and is increasingly touted as key to electric vehicles. The copper market is one of the largest base metals markets. However, investor purchases and sales of copper can still have a large impact on the price. Moreover, the metal has historically been prone to price manipulation by large players. Accordingly, these are only appropriate for investors willing to take on considerable risk. Last Updated: 11/27/2024 View more View less