How to Invest in Copper ETFs [2024] | Step-by-Step

Summary: Copper is becoming an increasingly attractive investment opportunity due to limited supply and growing demand in the electronic parts, construction, and renewable energy sectors. One of the most straightforward answers on how to invest in this commodity is through copper ETFs, using the services of our preferred online brokerage, Interactive Brokers.

What are copper ETFs?

Copper is a valuable metal and commodity with an indispensable role across several industries. As the most conductive non-precious metal, it is vital for electrical wires and integrated circuits. Furthermore, copper usage is five times higher in renewable energy than in fossil fuel power generation, making copper the preferred commodity for renewable energy like solar, wind, hydro, and biofuel.

Buying and selling copper physically is difficult and inconvenient due to the required effort and necessary logistics. However, financial instruments like copper exchange-traded funds (ETFs) allow investors to embark on the copper market without dealing with storage, transportation, or security concerns. 

Best copper ETFs for 2024

Our selection of top copper ETF picks include:

• United States Copper Index ETF (NYSE Arca: CPER);
• Global X Copper Miners ETF (NYSE Arca: COPX).

If you are looking for more ways to invest in copper, check our “How to Invest in Copper” guide.

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1. United States Copper Index ETF (CPER)

United States Copper Index ETF (NYSE Arca: CPER) is an ETF that enables investing in copper via futures contracts. The index is structured as a commodity pool and tracks the price movement of copper, acting as a single entity to increase leverage and profits. Its holdings include copper futures contracts and the equivalent amount of cash as collateral.

United States Copper Index ETF price today

Your capital is at risk.

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2. Global X Copper Miners ETF (COPX)

Global X Copper Miners ETF (NYSE Arca: COPX) is an equity-based ETF that gives investors access to a wide range of companies in the copper mining industry. It aims to secure investment outcomes that closely follow the price and yield performance of the Solactive Global Copper Miners Total Return Index.

Some of the copper stocks this ETF observes include:

• Zijin Mining;
• Antofagasta;
• Southern Copper;
• Grupo Mexico;
• Freeport-McMoRan.

Global X Copper Miners ETF price today

Your capital is at risk.

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How to invest in copper ETFs: Step-by-step

If you wonder how to invest in copper ETFs, just follow our step-by-step guide for a quick and simple explanation.

Step 1: Choose a broker

To invest in copper ETFs, you first need to gain access to the corresponding market, which you can do by using a third-party investing service. The simplest and most effective option is an online brokerage.

To securely invest in copper ETFs, we recommend you consider Interactive Brokers (IBKR):

• Commission-free stock trading;
• Global stock-trading on 90+ market centers;
• Fractional shares available;
• Extra income on fully paid shares;
• Lowest financing rates for margin accounts in the industry;
• No account minimum.

Step 2: Open and fund your account

After you decide on a brokerage, you should proceed to create and verify your account. Soon after you register, the investing platform will email you the precise instructions.

Once you complete account verification, you prepare to invest in copper ETFs by transferring money into your account. Commonly available funding methods include bank transfers, debit or credit cards, and transaction services like PayPal.

Step 3: Decide how much you want to invest

Outlining your budget before you invest in copper ETFs is vital to success. Keeping safely within the budget limits should prevent your potential financial collapse. To allow for a stable and safe investment, make sure you have done the following:

• Paid off all high-interest debt, such as credit cards and personal loans;
• Created an emergency fund that covers at least three months of daily life expenses.

Step 4: Place your order and trade copper ETFs

The next step is placing an order and conducting the trade. Go through the following: 

• Step 1: Log into your account and find the desired copper ETF ticker;
• Step 2: Type in the amount you wish to purchase;
• Step 3: Select the order type (market order or limit order) and place it;
• Step 4: Confirm the trade order.

Pros and cons of investing in copper ETFs

Consider investing in more ETFs

If you are considering additional investing in ETF commodities, you can check out our other guides on this topic, including:

• How to Invest in Gold ETFs;
• How to Invest in Silver ETFs;
• How to Invest in Lithium ETFs;
• How to Invest in Natural Gas ETFs;
• How to Invest in Wheat ETFs;
• How to Invest in Cobalt ETFs;
• How to Invest in Farmland ETFs.

Common mistakes to avoid when investing in copper ETFs

Make sure to avoid these common investing mistakes:

• Lack of research: Research the target ETF and the related commodities in detail before investing;
• Lack of strategy: Set your goals before you spend any money;
• Staking everything on one asset: Always diversify your portfolio;
• Falling prey to scams: Avoid illegal platforms and suspicious deals.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

FAQs about how to invest in copper ETFs

Can I buy physical copper instead of investing in ETFs?

Yes, you can trade physical copper, but it comes with challenges like storage, transport, and security. Therefore, ETFs provide a convenient alternative.

What are the best copper ETFs?

Our choice of the top copper ETFs are United States Copper Index ETF (NYSE Arca: CPER) and Global X Copper Miners ETF (NYSE Arca: COPX).

How to trade copper ETFs?

To trade copper ETFs, register an account with a reputable investing service like Interactive Brokers, designate a copper ETF, fund your account, and place a buy or sell order through the platform.

Do copper ETFs pay dividends?

Unfortunately, most copper ETFs do not pay dividends.

Is trading copper ETFs safe?

By doing your own research, making sound investing decisions, and using a regulated brokerage like Interactive Brokers, you maximize the safety and success chance of your investment.