Copper ETFs or Exchange Traded Funds can be a great addition to your portfolio to diversify and hedge against inflation or market volatility.
An advantage to investing in precious metals is that they are typically not correlated to the performance of the equities market.
This means that if there is market volatility, investors tend to invest in stable ‘safe haven’ precious metals like gold or copper. The price of precious metals often also rises when stocks are unstable.
Copper can be a volatile asset, and it does not have the same historical stability as gold or silver.
Precious metals ETFs can be purchased at any Canadian brokerage, but you can save on fees with popular discount brokerages.
In this article, I cover the 5 best copper ETFs for Canadian investors in 2023.
What is a Copper ETF?
Copper ETFs are baskets of stocks that provide exposure to companies that operate in the copper industry, like copper miners.
ETFs are much more liquid, and it is easier to trade than owning physical copper bullion or coins.
Precious metal ETFs provide a diversified investment in the industry, rather than just individual companies or copper futures contracts.
Best Copper ETFs
Here are the most popular copper ETFs in Canada:
1. Horizons Copper Producers Index ETF
- Ticker symbol: COPP
- MER: 0.65%
- Number of Holdings: 17
- 5-year average annual return: N/A
- Invests in: Copper Mining Stocks
- Issuer: Horizons ETFs
- Assets under management: $6.7 million
- Distribution yield: N/A
- Inception date: May 16, 2022
COPP is a brand new ETF that debuted in May 2022 that trades on the Toronto Stock Exchange.
This ETF invests directly in copper mining companies like Freeport-McMoran Inc (FCX), Southern Copper Corp (SCCO), and Turquoise Hill Resources (TRQ).
The fund is hedged with the US Dollar to protect against currency fluctuations since it holds both Canadian and American-listed stocks.
COPP is the first and only Copper ETF that trades on the Toronto Stock Exchange.
2. Global Copper X Miners ETF
- Ticker symbol: COPX
- MER: 0.65%
- Number of Holdings: 41
- 5-year average annual return: 17.17%
- Invests in: Copper Mining Stocks
- Issuer: Global X ETFs
- Assets under management: $1.63 billion
- Distribution Yield: 2.40% semi-annually
- Inception date: April 19, 2010
The Global Copper X Miners ETF was established in 2010 and trades on the NYSEARC ETF exchange.
The fund invests in global copper miners, including Teck Resources (TECK.B and Southern Copper Corp (SCCO).
COPX has an MER of 0.65% and a semi-annual distribution yield of 2.40%.
This ETF is eligible for registered and non-registered funds but be warned it does trade in US dollars.
Related: How To Invest in Gold.
3. Barclays iPath Bloomberg Copper Subindex Total Return ETN Series B
- Ticker symbol: JJC
- MER: 0.45%
- Number of Holdings: 1
- 3-year average annual return: 16.47%
- Invests in: Copper Futures
- Issuer: Barclays
- Assets under management: $90 million
- Distribution Yield: N/A
- Inception date: January 17, 2018
JJC provides Canadian investors with direct exposure to underleveraged copper futures contracts.
This ETN is eligible for all funds, but it trades in US Dollars on the NYSEARCA exchange.
It has a 0.45% MER and no distribution yield and only holds one asset: copper futures contracts.
4. United States Copper Index Fund ETF
- Ticker symbol: CPER
- MER: 0.80%
- Number of Holdings: 1
- 5-year average annual return: 50.03%
- Invests in: Copper Futures
- Issuer: Marygold Cos, Inc
- Assets under management: $209 million
- Distribution Yield: N/A
- Inception date: November 15, 2011
CPER is another copper ETF that trades exclusively in copper futures contracts on COMEX. It trades in US dollars and is listed on the NYSEARCA Exchange.
Like JJC, CPER does not offer a distribution to shareholders. CPER has a fairly high MER of 0.80%.
- Ticker symbol: PICK
- MER: 0.39%
- Number of Holdings: 250
- 5-year average annual return: 17.69%
- Invests in: Copper Miners
- Issuer: Blackrock iShares
- Assets under management: $1.4 billion
- Distribution Yield: 5.79% semi-annually
- Inception date: January 31, 2012
PICK is a Blackrock iShares ETF that is listed on the BATS exchange and is traded in US Dollars.
This ETF holds a wide range of precious metal miners, and copper miners make up 9.8% of the holdings.
It invests in companies like Rio Tinto (RIO), BHP Group (BHP), and Nucor Corp (NUE).
PICK has a semi-annual distribution yield of 5.79% and a reasonable MER of 0.39%.
How To Buy Copper ETFs in Canada in 2024
Copper ETFs can be easily bought on one of Canada’s excellent discount brokerage platforms or stock trading apps.
Questrade
Questrade is Canada’s best discount brokerage and has been in operation for over 20 years.
It also provides lower trading fees and free purchase orders for ETFs but has a minimum fee of $4.95 when you want to sell them.
Questrade also offers stocks, bonds, mutual funds, options, and many other investment assets. You get a $50 trading fee credit when you deposit $1,000 or more.
Questrade
Trade stocks, ETFs, options, FX, bonds, CFDs, mutual funds, etc.
Get $50 trade credit with $250 funding
Low and competitive trading fees
No quarterly inactivity fees
Access to advanced tools and trading data
Top platform for advanced traders
Transfer fees waived
CIBC Investor’s Edge
CIBC is the first of the major banks in Canada to offer lower trading fees, particularly for younger investors and students.
This broker offers mobile and online trading and has low ETF trading fees of $6.95 and as low as $4.95 for active traders.
Learn more about CIBC Investor’s Edge.
Are Copper ETFs a Good Investment?
Copper ETFs and other precious metal funds can be a great way to diversify your portfolio and hedge against inflation and market volatility.
ETFs provide exposure to a basket of stocks or copper futures contracts. Some will even pay a distribution to shareholders for added cash flow.
As the demand for copper in production rises, copper mining stocks and ETFs should rise as well.
Downsides of Copper ETFs
Investing in just one sector can limit your upside and overall diversification.
Copper ETFs usually trade in sympathy with the price of copper futures. If the price of copper tumbles, so too will the ETF.
While it is in high demand now, copper has not been a historically safe investment like gold.
Top Copper Stocks
If you are looking for some of the best copper stocks for Canadian investors, here’s a quick list.
- Turquoise Hill Resources Ltd (TSE:TRQ)
- PolyMet Mining (TSE:POM)
- First Quantum Minerals (TSE:FM)
- Amerigo Resources (TSE:ARG)
- Filo Mining (TSE:FIL)
- Lundin Mining (TSE:LUN)
- Hudbay Minerals (TSE:HBM)
- Taseko Mines Ltd (TSE:TKO)
- Teck Resources Ltd Class B (TSE:TECK.B)
- Copper Mountain Mining Corp (TSE:CMMC)
Copper ETF FAQs
Is there a copper mining ETF on the TSX?
The Horizons Copper Producers ETF (COPP) is the first and only copper mining ETF that trades on the Toronto Stock Exchange.
This ETF was introduced in May of 2022 and holds 17 different copper mining stocks in its holdings.
What is the best copper ETF?
For Canadian investors, the COPP ETF is a great way to invest in copper because it is listed on the TSX in Canadian dollars.
The Global X Copper Miners ETF is the largest copper ETF, with $1.6 billion in AUM and even a 2.40% semi-annual distribution payment.
Does Vanguard have a copper ETF?
No, Vanguard does not have a specific ETF dedicated to copper as of June 2022.
It does provide several different precious metals ETFs that have exposure to copper, such as the Vanguard Materials ETF (VAW) and Vanguard Global Capital Cycles Fund (VGPMX).
There is no dedicated Blackrock iShares copper ETF in Canada or in the United States.
The closest thing to an iShares copper ETF is the iShares MSCI Global Metal and Mining Producers ETF (PICK).
Is there a precious metals ETF?
Yes, nearly every major ETF provider offers a precious metals ETF that has exposure to copper as well as other metals like gold and silver.
Some of the more popular precious metals ETFs include the Invesco DB Precious Metals Fund (DBP), the Vanguard Global Capital Cycles Fund (VGPMX), and the iShares S&P/TSX Global Base Metals Index ETF (XBM)
How can I invest in copper?
There are plenty of ways to invest in copper these days for Canadian investors.
The most popular ways are to buy copper stocks or ETFs, but investors can also buy copper futures contracts or even buy physical copper bullion or coins.
Related: Best Investment Newsletters in Canada.
