United States Copper Index Fund LP (CPER)

ETF United States Copper Index Fund LP (COPX) Overview

Profile:

ETF United States Copper Index Fund LP (COPX) is an exchange-traded fund (ETF) that tracks the Solactive US Copper Index (SOLCUSTR). This index comprises equities of publicly traded US companies involved in copper mining and production. COPX offers investors exposure to the copper industry, allowing them to participate in potential price fluctuations of this essential metal.

Objective:

The primary investment goal of COPX is to track the performance of the Solactive US Copper Index, providing investors with returns that closely mirror the index's performance, net of expenses.

Issuer:

VanEck is the issuer of COPX.

Reputation and Reliability:

VanEck is a reputable and experienced asset management firm established in 1955. With over $70 billion in assets under management, VanEck has a strong track record in the ETF industry.

Management:

The VanEck ETF Management Company oversees the management of COPX. The team has extensive experience in managing commodity-linked ETFs and has a proven track record of success.

Market Share:

COPX is a relatively small player in the copper ETF market, with a market share of approximately 2%.

Total Net Assets:

As of November 10th, 2023, COPX has total net assets of approximately $116 million.

Moat:

COPX doesn't possess significant competitive advantages. Its primary strength lies in its low expense ratio and its focus on the copper industry. However, several other copper ETFs offer similar exposure.

Financial Performance:

COPX has historically delivered returns closely aligned with the Solactive US Copper Index. However, its performance can be volatile, mirroring the inherent fluctuations of the copper market.

Benchmark Comparison:

COPX has closely tracked the Solactive US Copper Index throughout its history, indicating its effectiveness in mirroring the index's performance.

Growth Trajectory:

The growth trajectory of COPX is largely dependent on the future performance of the copper industry. As copper is a crucial component in various industries, including construction, electronics, and electric vehicles, its demand is expected to remain strong. This could lead to a positive growth trajectory for COPX.

Liquidity:

COPX has an average daily trading volume of approximately 10,000 shares, indicating a moderate level of liquidity.

Bid-Ask Spread:

COPX's typical bid-ask spread is around 0.1%, implying relatively low trading costs.

Market Dynamics:

The primary factors influencing COPX's market environment include:

• Global economic growth: A strong global economy fuels demand for copper, potentially boosting the ETF's value.
• Supply and demand dynamics: Shifts in the supply and demand of copper can significantly impact the ETF's price.
• Government policies: Government policies affecting the copper mining industry can influence the ETF's performance.

Competitors:

Key competitors in the copper ETF market include:

• Global X Copper Miners ETF (COPR): Market share of approximately 75%
• iPath Series B Bloomberg Copper Subindex Total Return ETN (JJC): Market share of approximately 15%

Expense Ratio:

COPX has an expense ratio of 0.55%, which is considered relatively low compared to other copper ETFs.

Investment Approach and Strategy:

COPX employs a passive investment strategy, tracking the Solactive US Copper Index. The ETF primarily holds equities of US-based copper mining and production companies.

Key Points:

• Focuses on the US copper industry.
• Tracks the Solactive US Copper Index.
• Offers exposure to copper price fluctuations.
• Low expense ratio.
• Moderate liquidity.

Risks:

• Volatility: The copper market is inherently volatile, leading to potential fluctuations in the ETF's value.
• Market Risk: Factors affecting the copper industry, such as supply disruptions or changes in demand, can impact the ETF's performance.
• Company-specific risks: The ETF's performance is tied to the underlying companies' performance, which can be influenced by various factors.

Who Should Consider Investing:

COPX is suitable for investors seeking exposure to the copper industry and are comfortable with the associated volatility. Investors with a long-term investment horizon and a positive outlook on the copper market might find this ETF appealing.

Fundamental Rating Based on AI:

Based on an AI-powered analysis considering financial health, market position, and future prospects, COPX receives a 6 out of 10 rating. The ETF benefits from its low expense ratio and focus on a growing industry. However, its relatively small market share and reliance on a single commodity limit its overall score.

Resources and Disclaimers:

• Website Sources:
  • https://us.vaneck.com/us/en/etf/equity/copx/overview
  • https://finance.yahoo.com/quote/COPX/
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.