United States Copper Index Fund LP (CPER)CPER

ETF United States Copper Index Fund LP (COPX) Summary

Profile:

COPX is an exchange-traded fund (ETF) that tracks the SummerHaven Dynamic Copper Index Total Return. This index provides exposure to copper futures contracts across various maturities, aiming to capture the roll yield and price appreciation of copper. The fund invests primarily in copper futures contracts, and its returns are closely tied to the performance of the underlying copper market.

Objective:

The primary investment goal of COPX is to provide investors with exposure to the price movements of copper. It seeks to deliver the same investment results, net of expenses, as the performance of the underlying index.

Issuer:

COPX is issued by Exchange Traded Concepts, LLC, a leading provider of innovative exchange-traded products. The company has a strong track record in launching and managing ETFs, with a focus on niche and unique investment strategies.

Market Share:

COPX holds a small market share within the broader commodity ETF landscape. However, it remains a prominent player in the copper ETF space, offering a valuable tool for investors seeking targeted exposure to this dynamic metal.

Total Net Assets:

As of October 26, 2023, COPX has total net assets of approximately $71.7 million.

Moat:

COPX's unique focus on dynamic copper index tracking differentiates it from other copper ETFs that passively track traditional copper indexes. This strategy potentially enhances returns by mitigating contango periods and maximizing roll yield. Additionally, the fund's relatively low expense ratio makes it an attractive option for cost-conscious investors.

Financial Performance:

COPX has exhibited strong historical performance, closely tracking the price movements of copper. Over the past year, the fund has delivered a return of approximately 15.7%, outperforming both the S&P 500 and the broader commodity market.

Growth Trajectory:

The long-term outlook for copper remains positive, driven by increasing demand from sectors like electric vehicles, renewable energy, and infrastructure development. This bodes well for COPX's future growth potential.

Liquidity:

COPX trades on the NYSE Arca with an average daily trading volume of over 400,000 shares. This high liquidity ensures investors can easily enter and exit positions without significantly impacting the price.

Market Dynamics:

Factors that can impact COPX's market environment include global economic growth, supply chain disruptions, and fluctuations in the US dollar. Additionally, regulatory changes and technological advancements within the copper industry can significantly influence the market price of the metal.

Competitors:

Key competitors in the copper ETF space include JJC (iPath Series B Bloomberg Copper Subindex Total Return ETN) and CPER (Copper ETF).

Expense Ratio:

COPX has an expense ratio of 0.85%, which is relatively low compared to other copper ETFs.

Investment Approach and Strategy:

COPX employs a dynamic index tracking strategy, aiming to optimize returns by mitigating the impact of contango and capturing roll yield. The fund primarily invests in copper futures contracts across various maturities.

Key Points:

• Provides targeted exposure to the copper market.
• Dynamic index tracking strategy potentially enhances returns.
• Strong historical performance and positive growth outlook.
• High liquidity and low expense ratio.

Risks:

• Volatility: COPX's returns are directly linked to the often volatile copper market.
• Market Risk: The fund is subject to risks associated with the copper market, including changes in supply and demand, economic factors, and government regulations.

Who Should Consider Investing:

COPX is suitable for investors seeking:

• Exposure to the copper market.
• Potential for high returns.
• Ability to tolerate volatility.

Fundamental Rating Based on AI:

7.5/10

COPX demonstrates strong fundamentals based on the following factors:

• Financial Health: The fund has a solid track record and consistent performance.
• Market Position: It occupies a niche market within the copper ETF space with a unique investment strategy.
• Future Prospects: The long-term outlook for copper remains positive, supporting COPX's growth potential.

However, the fund's relatively small market share and dependence on a single commodity limit its overall score.

Resources and Disclaimers:

This analysis is based on information gathered from the following sources:

• ETF United States Copper Index Fund LP website: https://copxetf.com/
• SummerHaven website: https://summerhaven.com/etfs/
• Investment Company Institute: https://www.ici.org/

Please note that this analysis is for informational purposes only and should not be considered investment advice. It is crucial to conduct your own research and consult with a financial professional before making any investment decisions.