Copper Got Crushed. These ETFs Could Help You Turn It Into Opportunity

In a stunning reversal for the commodities market, copper futures plummeted nearly 20% last Wednesday. The dramatic crash followed a key announcement from the Trump administration: refined copper imports, specifically copper cathodes, will be exempted from the new 50% tariff.

This decision leaves the new levy to only target semi-finished products like copper pipes, rods, and wires.

Why the Copper Price Drop Happened

This sudden policy shift was a brutal wake-up call for traders. Weeks of market speculation about a broad, all-encompassing tariff had fueled a rally, sending COMEX copper futures to record highs. Traders, anticipating a massive price gap, had rushed to import refined copper, creating a significant surplus of copper cathodes in U.S. warehouses.

The exemption of these cathodes from the tariff instantly erased the arbitrage opportunity, causing the market to collapse.

Buying the Copper Dip with ETFs

While copper tariffs won’t be added on top of auto import duties, the outlook remains uncertain.
For investors who believe in a future rebound in the copper market, the recent dip could present a compelling opportunity to gain exposure through copper-focused ETFs.

For U.S. Investors: Investing in Copper ETFs

U.S. investors looking to gain exposure to copper have a couple of main options: copper futures or ETFs that invest in copper miners.

One of the most direct options is the United States Copper Index Fund (CPER), an exchange-traded product listed on NYSE Arca.

CPER aims to track the daily price movements of the SummerHaven Copper Index Total Return (SCITR), minus fund expenses and primarily holds copper futures contracts, and may also include copper-related forwards or swaps to meet regulatory or liquidity needs. These positions are backed by cash or short-term U.S. government securities (with maturities under two years).

Investing in CPER has a major risk called is contango. It's a market condition where longer-dated futures contracts are more expensive than near-term ones.

When this happens, rolling from one contract to the next (which futures-based ETPs must do regularly) can erode returns over time, even if the spot price of copper stays flat or rises slowly.

This "roll cost" can make futures-based products less efficient over the long term, especially in markets where contango persists.

On top of that, futures introduce additional complexities, such as margin requirements, tracking error, and sensitivity to market volatility.

For U.S. Investors: Investing in Copper Miners ETFs

Investors can also gain exposure to copper through copper mining companies, which offer a different kind of opportunity compared to direct futures or physical copper.

When copper prices rise, miners often outperform due to their high operating leverage as small increases in copper prices can lead to much larger jumps in profits. This can make mining stocks especially attractive during a bull market in commodities.

However, the flip side is also true: in downturns, these same miners can underperform sharply, as their profits are highly sensitive to falling prices and rising costs.

Here's a full list of US-listed Copper Miners ETFs:

• Sprott Copper Miners ETF (COPP)
• Themes Copper Miners ETF (COPA)
• Global X Copper Miners ETF (COPX)
• Sprott Junior Copper Miners ETF (COPJ)
• iShares Copper and Metals Mining ETF (ICOP)

The Global X Copper Miners ETF (COPX) is the largest copper miners ETF with $1.79B in assets under management as of August 1st, 2025. COPX seeks to track the performance of the Solactive Global Copper Miners Total Return Index, which includes a broad range of companies involved in copper ore exploration, extraction, and refinement.

The fund holds 39 stocks across 12 countries, with significant exposure to Canada (37.4%), the United States (10.6%), and key producers in China, Australia, Japan, and elsewhere.

Its portfolio is dominated by the materials sector (95.5%), and its top holdings—such as Freeport-McMoRan, First Quantum, Zijin Mining, and Antofagasta—each represent close to 5% of assets.

With a 10-year annualized return of 10.02% and an expense ratio of 0.65%, COPX provides a targeted way to follow the performance of the global copper mining industry as tracked by its underlying index.

For European Investors: Investing in Copper ETFs

European investors can also invest in the copper commodity via ETPs (non-leveraged, long-only):

• Leverage Shares Copper ETC (CPER)
• UBS ETC on UBS Bloomberg CMCI Copper TR Index (TLPCIU)
• WisdomTree Copper - USD (COPA)
• WisdomTree Copper IE - USD (COPR)
• Leverage Shares Copper ETC - USD (CPER)
• BNP Paribas Copper (TR) ETC - EUR (B4NQ)
• WisdomTree Copper - EUR Daily Hedged - EUR
• UBS ETC on UBS Bloomberg CMCI Copper TR Index - USD (TLPCIU)
• BNP Paribas RICI Enhanced Copper (TR) ETC - USD (B4NB)
• BNP Paribas RICI Enhanced Copper (TR) ETC - EUR (BNQP)
• BNP Paribas RICI Enhanced Copper (TR) EUR Hedge ETC - EUR (B4N5)
• BNP Paribas RICI Enhanced Copper (ER) Index EUR Hedge ETC - EUR (0GZB)

For European Investors: Investing in Copper Miners ETFs

Similar to the U.S., European investors also have access to several Copper Miners ETFs:

• iShares Copper Miners UCITS ETF (COPM)
• Global X Copper Miners UCITS ETF Acc (4COP)
• Sprott Pure Play Copper Miners UCITS ETF - Acc (ASWD)

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.