By Michael Johnston, founder of ETF Database.Investors have rejoiced in the rebound of the U.S. equity markets this year, but the real winners have been those who were bullish on commodities as the markets bottomed. Hopes of a steady recovery, consistent downward pressure on the dollar, and even strikes at major South American mines have sent prices for metals used in industrial and manufacturing operations skyrocketing in recent months. Copper has been one of the bast performers: the iPath Dow Jones AIG Copper Total Return ETN ( JJC) has gained more than 100% for the year.
ETF Plays On CopperFor investors looking to make a play on copper prices, JJC is one of the best options available. This exchange-traded note is linked to an index composed of futures contracts on the commodity. JJC has an average daily volume of about 100,000 shares and an expense ratio of 0.75%, making it a highly liquid, relatively inexpensive way to gain exposure to copper prices.
- iPath Dow Jones-UBS Industrial Metals ETF (JJM): Invests in copper (44.1%), aluminum (26.8%), zinc (15.5%), and nickel (13.6%).
- PowerShares DB Base Metals Fund (DBB): Invests in zinc (currently 41%), copper (38%), and aluminum (20.9%), with a base weighting of 33.3% for each metal.
- Elements Rici Metals Total Return ETN (RJZ): Invests in 10 different precious and industrial metals, including copper.