Why Copper Could Be the Next Commodity Play (And 5 ETFs to Ride the Wave)

Clean energy isn’t just a buzzword anymore—it’s reshaping commodity markets. Enter copper, the unsung hero that most investors sleep on.

Here’s the thing: copper is basically the backbone of the energy transition. Solar panels, wind turbines, EV batteries, transmission grids—they all need massive amounts of it. The metal’s got four killer properties that make it irreplaceable: highest electrical conductivity of any non-precious metal, ductility (flexible enough to become wires or sheets), 60% better thermal efficiency than aluminum, and full recyclability with zero degradation.

The demand outlook is wild. S&P Global forecasts copper demand will surge 82% from 2021 to 2035. That’s not hype—that’s structural growth driven by trillions in clean energy capex.

But here’s the catch: Copper’s been under pressure lately. March futures hit lows since mid-November before bouncing back. Why? China, the world’s biggest copper consumer, is slowing down. So despite bullish long-term tailwinds, timing matters.

The 5 ETFs to Consider

1. CPER (US Copper) – Pure play on copper futures. $125M AUM, 0.88% expense ratio. Flat YTD. Direct commodity exposure, maximum leverage to price moves.

2. COPX (GX Copper Miners ETF) – Tracks global copper mining companies like Southern Copper, Freeport-McMoRan, and Ivanhoe Mines. $1.4B AUM, 0.65% fee. Down 2.8% YTD. Best for equity-based copper exposure.

3. COPJ (Sprott Junior Copper Miners ETF) – New kid on the block (Jan 2023), focuses on mid- and small-cap miners. $4.9M AUM, 0.75% fee. Down 4.1% YTD. Higher risk/reward for believers.

4. ICOP (iShares Copper and Metals Mining ETF) – BlackRock’s copper-plus play with diversified mining exposure. $4.9M AUM, 0.47% fee. Down 4% YTD. Sweet spot between purity and diversification.

5. PICK (iShares Global Select Metals & Mining) – Broader metals play beyond copper. $1.1B AUM, lowest fee at 0.39%. Down 7.4% YTD. For investors wanting exposure to the entire non-precious metals cycle.

The Bottom Line

Copper’s demand story is rock solid for the next decade. But prices are cyclical. CPER gives you raw commodity exposure. COPX and COPJ let you bet on miners’ profitability. ICOP and PICK offer diversification within the metals space.

Pick based on your thesis: if you think copper prices rip, go CPER. If you think miners will compound cash flows, go COPX or COPJ. If you want a basket approach, ICOP or PICK.