Copper exchange-traded funds (ETFs) are funds that hold shares of copper mining companies or copper futures contracts. These ETFs enable you to easily invest in copper, which is one of the most widely used metals on the planet. It's an excellent conductor of electricity, making it vital for electrical applications. Copper is also growing in importance as the economy turns to electricity to reduce carbon emissions and mitigate the worst effects of climate change.
Copper is an essential component for wind energy and in electric vehicles. As a result, copper usage should rise in the coming years. The increased demand should boost the price of copper, as well as share prices of mining companies focused on the metal.
There are many ways to potentially profit from the growth in the copper market. One broad approach is to invest in an ETF focused on the copper sector. Here's a closer look at the top copper ETFs.
Three top copper ETFs
Three top copper ETFs
A few ETFs provide investors with direct exposure to the copper market. They take two different approaches. One strategy is to own shares of mining companies that get a significant portion of their revenue from copper. The other strategy is to invest in futures contracts that derive their value from copper prices. Here are the top copper-focused ETFs:
| Copper ETF | Ticker symbol | Assets under management | Focus |
|---|---|---|---|
| Global X Copper Miners ETF | (NYSEMKT:COPX) | $2.0 billion | Copper miners |
| United States Copper Index ETF | (NYSEMKT:CPER) | $239.1 million | Copper futures |
| iShares Copper and Metals Mining ETF | (NYSEMKT:ICOP) | $69.8 million | Copper and metals mining compaines |
Data source: ETF Database. Data as of July 11, 2025.
1. Global X Copper Miners ETF
Global X Copper Miners ETF
The Global X Copper Miners ETF provides investors with access to a range of copper mining companies. The ETF held 40 copper stocks as of mid-2025, led by the following five:
- First Quantum (FM 2.59%): 5.5% of the fund's holdings.
- Freeport-McMoRan (FCX 2.62%): 5.4%.
- Lundin Mining (LUNMF 1.56%): 5.1%
- Hudbay Mineral (HBM 2.77%): 4.8%.
- Antofagasta (ANFGF 3.63%): 4.7%.
The ETF gives investors targeted exposure to the entire copper mining industry. It allows investors to hold a broad basket of copper mining stocks for a modest ETF expense ratio of 0.65%.
One drawback to investing in copper mining stocks is that they can underperform the price of copper due to cost overruns, mismanagement, or other issues. Many also produce other metals such as iron ore, aluminum, and gold, which can dilute the impact of higher copper prices.
However, copper mining stocks can also potentially outperform copper if they can expand production amid rising copper prices. They also offer the potential to collect dividend income.
2. United States Copper Index ETF
United States Copper Index ETF
The United States Copper Index is an ETF that invests in copper futures contracts. The ETF's objective is to reflect the return of an index benchmark for copper futures minus its expenses. The ETF’s holdings include copper futures contracts and an equal amount of cash and equivalents serving as collateral.
The ETF has a rather high expense ratio of 1.04%; it costs the ETF money to roll its futures contracts forward at expiration. The expenses have caused the fund to underperform its benchmark and the price of copper over the long term.
However, the United States Copper Index ETF isn't supposed to be a long-term holding. It aims to match the daily returns of its index. It's best used to make a short-term trade on the belief that the price of copper will make a significant near-term move.
3. iShares Copper and Metals Mining ETF
iShares Copper and Metals Mining ETF
The iShares Copper and Metals Mining ETF aims to provide investors with exposure to global copper and metal ore miners that should benefit from rising demand for the metal.
The copper ETF held shares of more than 40 mining companies in mid-2025, led by:
- Freeport-McMoRan: 8.7% of the fund's holdings
- Grupo Mexico: 8.3%
- BHP Group (BHP 1.44%): 7.6%
- First Quantum Minerals: 6.5%
- Antofagasta: 5.9%
The fund enables investors to hold shares of companies that have some copper mining operations.
The iShares Copper and Metals Mining ETF had a 0.47% expense ratio.
Key considerations when investing in copper ETFs
Investors interested in copper ETFs need to consider several factors before buying a copper ETF. These include:
- ETF type: Investors need to determine if they want an ETF that invests in copper mining companies or copper futures contracts.
- Volatility: Investors need to consider whether they can handle the volatility of copper prices and the potential impact on their portfolio.
- Income: They need to decide whether they want to collect dividend income from copper mining stocks or just participate in the potential upside of copper prices.
- Cost: Investors need to determine whether the cost of a copper ETF is worth it.
Related investing topics
Using copper ETFs
How to use copper ETFs
Copper ETFs offer investors a way to invest in the thesis that copper prices will rise in the future. However, copper ETFs can underperform the price of copper due to the risks facing mining companies and the costs associated with rolling copper futures contracts.
Of the two copper ETF strategies, copper mining stock ETFs offer the potential for upside beyond the rise in copper prices. A mining-focused ETF gives long-term investors a better return profile for the risk.
FAQ on investing in copper ETFs
What is the best way to invest in copper?
The best way to invest in copper is through shares of a copper mining company or an ETF focused on copper stocks, like the Global X Copper Miners ETF.
Is there a copper commodity in ETF?
There is one copper commodity ETF. The United States Copper Index Fund invests in copper futures contracts, providing investors with exposure to copper commodity prices.
What is the dividend on copper ETFs?
The dividend yield on the iShares Copper and Metals Mining ETF was 2.4% on a trailing-12-month basis in mid-2025, while the Global X Copper Miners ETF had a 1% yield.
Does copper do well in a recession?
No, the price of copper generally declines during a recession. That's due to falling demand for the metal as the economy slows, which typically causes prices to decline.
