Top Canadian Copper ETFs

Copper is a commodity that remains critical to the global shift toward sustainable and clean energy. In fact, copper prices hit a 5-year high in July 2025, driven by strong demand from the electric vehicle, renewable energy, and infrastructure sectors. McKinsey predicts that electrification alone could push annual copper demand to over 36 million metric tonnes by 2031¹.

Similarly, S&P Global forecasts that global copper demand will double by 2035 as the world transitions from fossil fuels to clean, net-zero electricity generation. Often called “the metal of electrification,” copper is a key component in electric vehicles, charging infrastructure, solar panels, and energy storage systems.

With demand projected to continue rising, investors looking to capitalize on this long-term trend may consider a copper exchange-traded fund (ETF) as a convenient and diversified way to gain exposure to the metal. Here’s what you need to know before investing in a copper ETF.

What is a copper ETF?

A copper ETF holds an underlying basket of copper assets, which is divided into a number of shares that trade on an exchange. Investors can buy and sell these shares throughout the day, and the price of the shares will reflect the movements of the underlying asset.

Like all ETFs, copper ETFs charge fees to their investors. These fees encompass the fund manager’s management fees and any operational, administrative, and marketing expenses incurred throughout the year. These are consolidated to form the ETF’s management expense ratio (MER).

The MER is calculated as a percentage fee subtracted from your total investment annually. For instance, an individual who invests $10,000 in a copper ETF with a 0.75% MER can anticipate paying $75 in yearly fees. Fees compound over long periods of time, so it’s always a good idea to keep this as low as possible.

2 types of copper ETFs

Copper ETFs can gain exposure to copper prices in one of two ways, but the basic premise remains similar between both. 

1. The first type of copper ETF is the copper miner ETF. These ETFs do not hold the metal directly. Rather, they hold a portfolio of mining stocks that derive a significant portion or all of their revenues from copper exploration, development, or mining. 
2. The second type of copper ETF is the copper futures ETF. These ETFs also do not hold the metal directly. Rather, they use derivatives called futures contracts, which are agreements to buy and sell copper at a predetermined price in the future, hence the name. 

Both of these ETFs will be correlated to the spot copper price but may not track it exactly. Therefore, it’s important to know that for now, the two types of copper ETFs are a useful proxy for copper exposure, but will not provide precise tracking of copper prices. 

Top copper ETFs in Canada

The following ETFs provide exposure to copper, either via copper miner stocks or exposure using copper futures contracts. Because the Canadian ETF market is smaller, some of the picks here are U.S.-listed ETFs. To buy these ETFs, Canadian investors will need to convert U.S. dollars. 

Horizons Copper Producers Index ETF

As of July, 2025, COPP is the only Canadian listed pure-play copper ETF. It provides exposure to a concentrated portfolio of U.S. and Canadian copper miner stocks by tracking the Solactive North American Listed Copper Producers Index. The ETF has not been out for a full year yet, so it does not have a MER. 

Global X Copper Miners ETF

Investors looking for copper miner stocks outside of North America can use COPX as an alternative to COPP. This ETF has been around since 2011, making it one of the more longstanding ETFs in this theme. Currently, COPX tracks the Solactive Global Copper Miners Total Return Index, which holds a total of 39 stocks. Because this is a U.S.-listed ETF, investors will need to buy it with U.S. dollars. 

United States Copper Index Fund

Investors who want exposure to copper prices without the influence of copper miner stocks can use CPER for a derivatives-oriented play. This ETF tracks the SummerHaven Copper Index Total Return, which is composed of copper futures contracts traded on the COMEX exchange. Due to the use of futures, this ETF charges a higher expense ratio and can be quite volatile. 

Pros of investing in copper ETFs

Copper ETFs may be suitable for investors looking for the following benefits:

1. Growth Potential: Copper is essential for industries like renewable energy, electric vehicles, and construction. If global demand surges—especially with the clean energy transition—copper miner stocks and copper futures can deliver significant upside. Recently on July 7, 2025, copper hit a 5-year high of $5.53.
2. Inflation Protection: Like other commodities, copper prices often rise during periods of inflation, providing a hedge against eroding purchasing power.
3. Liquidity and Accessibility: Copper ETFs trade on major exchanges, making them far easier to buy and sell than physical copper bullion or mining shares in multiple jurisdictions. Investors can gain copper exposure in registered accounts like a TFSA or RRSP, adding convenience and tax efficiency.
4. Diversification Within a Single Investment: ETFs often hold multiple copper miners or track futures, allowing investors to gain broader exposure to the copper market without picking individual stocks.

Cons of investing in copper ETFs

On the other hand, there are quite a few reasons why investors may choose to avoid copper ETFs:

1. High Volatility: Copper prices are highly sensitive to global economic conditions, industrial demand, and geopolitical events. For instance, copper fell to a four-year low of $1.98/lb in March 2020 amid reduced global manufacturing during the COVID-19 pandemic.
2. Concentration Risk: Copper ETFs focused on mining stocks are vulnerable to the cyclical nature of the mining and materials sectors. Company-specific risks—such as operational setbacks, rising extraction costs, or regulatory challenges—can also impact performance.
3. Higher Costs: Copper ETFs generally charge higher management expense ratios (MERs) than broad-market equity or bond ETFs, which can erode long-term returns.
4. No Physical Ownership: Unlike holding copper bullion, ETF investors don’t directly own copper, which may be a drawback for those seeking tangible assets during periods of extreme market uncertainty.

How to Invest in Copper in Canada: Step-by-Step

Step 1: Decide on Your Investment Approach

Choose whether you want direct exposure through copper mining stocks, diversified exposure via copper ETFs, or physical copper such as bars and coins. Stocks and ETFs are generally easier to trade, while physical copper appeals to those who prefer tangible assets.

Step 2: Open or Use an Investment Account

If you’re buying stocks or ETFs, you’ll need a brokerage account. For tax efficiency, consider using a TFSA or RRSP to shelter your copper-related gains.

Step 3: Research Your Investment Options

For stocks, look at major Canadian copper miners listed on the TSX. For ETFs, compare funds that track copper producers or copper futures. If buying physical copper, research reputable dealers and factor in storage and insurance costs.

Step 4: Monitor Copper Market Trends

Keep an eye on global copper demand, especially from construction, renewable energy, and electric vehicle industries, as these drive long-term price trends.

Step 5: Make Your Purchase and Diversify

Buy through your brokerage platform or from a certified bullion dealer. Consider allocating only a portion of your portfolio to copper to balance risk.

Step 6: Review and Rebalance Regularly

Track copper prices, company earnings, and ETF performance. Reassess your holdings periodically to ensure they still align with your financial goals.

Are copper ETFs right for you?

Copper ETFs are most appropriate for sophisticated investors with a high tolerance for risk and specific objectives in mind. If you’re open to embracing considerable fluctuations, copper ETFs can offer an opportunity to speculate on copper prices in a liquid and convenient manner. For those seeking a tax-efficient and liquid method to maintain a long-term position in copper, copper ETFs may serve as a viable alternative to physical bullion. 

It is essential to note that copper ETFs typically come with higher management expense ratios (MERs) compared to standard stock and bond index ETFs. Moreover, copper ETFs holding futures contracts can diverge significantly from the spot price of copper at times, while copper miner ETFs can be subject to stock market volatility as they are still equities.