Why Copper Will Become the New Gold for 2025 Investors
Inconspicuously, copper has emerged as one of the world's most sought-after metals. Its function as an industrial backbone makes it impossible to overlook as economies throughout the world move toward electric cars, renewable energy, and improved infrastructure.
This guide will take you through every step, from fund mechanics to performance data, to help you determine whether copper should be included in your 2025 portfolio.
Why Invest in Copper in 2025?
Growing Industrial Demand
Each EV battery uses about 10 kg of copper. Wind and solar installations also require substantial wiring and grounding.
Global Supply Constraints
Production growth is at risk due to the aging of top copper mines in Chile and Peru, creating potential supply shortages.
Portfolio Diversification
Copper can act as an inflation hedge due to its traditionally low correlation with stocks and bonds.
Top Copper ETFs Overview
Available for Indian Investors
| ETF Name | Ticker | Primary Exposure | Expense Ratio | AUM (USD) |
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Performance Comparison
| ETF | 1-Month | 1-Year | 3-Year |
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ETF Performance at a Glance (Returns %)
Best Copper ETFs to Invest in Globally (2025 Guide)
| Rank | Name | Ticker | 5-Year Returns (%) | Risk Ratio (Sharpe) | PE Ratio | PB Ratio | AUM ($M) | Expense Ratio (%) | Latest NAV ($) |
|---|
How to Invest in a Copper ETF: A Step-by-Step Guide
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Know What a Copper ETF Is
A Copper ETF is a fund that tracks the value of copper. It achieves this by holding copper futures contracts or owning shares of companies involved in copper mining and production.
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Open a Demat & Trading Account
To invest in ETFs in India, you need both a Demat and a Trading account. Select a SEBI registered stockbroker and complete the online KYC process using your PAN, Aadhaar, and bank details.
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Fund Your Account
Deposit funds into your trading account from your linked bank account. Ensure you have sufficient funds to buy the desired number of ETF units.
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Research the Right ETF
Consider the following factors when choosing an ETF:
- Expense Ratio: A lower percentage means lower annual costs for you.
- AUM (Assets Under Management): Higher AUM often indicates better liquidity.
- Tracking Error: A lower tracking error means the ETF is closely following the price of copper.
- Bid-Ask Spread & Volume: A tight spread and high volume make it easier to buy and sell at a fair price.
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Place Your Order
Log in to your broker's trading platform. Search for the Copper ETF by its ticker symbol (e.g., COPX). Choose your order type (Market or Limit) and specify the number of units to purchase.
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Monitor and Rebalance
Keep an eye on the ETF's NAV and the global price of copper. Rebalance your portfolio periodically (e.g., annually) to maintain your desired asset allocation. Consider setting up price alerts or stop-loss orders to manage risk.
Frequently Asked Questions
Is it safe for long-term investors to invest in Copper ETFs?
While commodities like copper can be more volatile than traditional equities, they can offer diversification benefits and act as a hedge against inflation over the long term. Risk tolerance and portfolio goals should be considered.
Are copper exchange-traded funds (ETFs) eligible for tax-saving investments?
No, Copper ETFs do not qualify for tax deductions under Section 80C in India. For tax-saving benefits, investors typically look towards Equity Linked Savings Schemes (ELSS).
How can I monitor the "copper etf share price India" on a daily basis?
You can use your stockbroker's app or website to add the ETF ticker to your watchlist. Most platforms also allow you to set up real-time price notifications for tickers like COPX, COPA, or other relevant metal ETFs.
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