The fund tracks the SummerHaven Copper Index and is managed to reflect the performance of the copper futures market. Each month it analyzes the shape of the futures curve and selects efficient contracts, which helps manage the costs that can arise from holding positions over the long term.

It suits individual and institutional investors who find it difficult to hold physical copper directly but want direct exposure to rising commodity prices.

It is a passive (index-tracking) ETF launched in 2011 by USCF Investments.

The fund selects efficient copper futures contracts by taking contango and backwardation into account. Rather than simply buying the next-month contract, it builds its portfolio by choosing, among contracts of various maturities, those with a favorable roll effect.

• An intelligent roll strategy that accounts for the futures curve
• Maintains a high correlation with physical copper prices

Assets under management (AUM) stand at $635.9M, and the expense ratio is 0.88% per year.

Unlike the equity ETF COPX, which invests in copper mining companies, CPER focuses on tracking the price of copper as a commodity itself.

Prices have been volatile amid expectations of rising copper demand from a global economic recovery and the transition to renewable energy, and they also react sensitively to supply-side issues.

Inflows stand out when expectations build for an inflation hedge or a commodity supercycle. Copper is classified as a highly cyclical asset, and investor interest remains steady.

It is an efficient way to invest directly in copper prices, but the roll risk and tax structure unique to futures investing should be checked.

Another alternative that tracks commodity prices is DBB, which invests in a basket of several base metals. If you prefer to invest in mining company stocks instead of futures and seek dividends and earnings growth, COPX or ICOP could also be good choices. It is also possible to build a portfolio by combining it with other commodity products that use similar futures strategies.

Before investing in CPER, you should clearly understand the supply-demand imbalances in the copper market and the cost structure unique to the futures market. Keep in mind both its value as an industrial metal and its character as a financial asset.

In a global recession, copper demand can drop sharply and cause large losses. In addition, because of structural factors in the futures market, long-term holders may not fully capture gains in physical copper prices.

This ETF can serve as a direct vehicle for investors who want short- to medium-term trades based on copper price movements, or who want to allocate to real assets as a hedge against inflation.