CPER ETF Review: Is US Copper Index Fund Worth Buying?

United States Copper Index Fund provides direct copper commodity exposure through futures contracts, offering a purer price tracking vehicle than mining equities but with the same contango roll cost challenges that plague USO and UNG over long holding periods.

Last updated: 2026-02-02 · Data: Yahoo Finance, fund prospectuses, SEC filings

What Is CPER?

The United States Copper Index Fund tracks the price of copper through futures contracts, providing pure-play exposure to the world's most critical industrial metal. Managed by Amplify Investments, CPER follows the SummerHaven Copper Index Total Return by holding near-month copper futures and rolling them forward monthly.

Expense ratio: 1.06% | AUM: $456M | Inception: 2011

Current Snapshot

Why It Matters for Real Asset Investors

CPER serves as the purest expression of the electrification trade within a real assets portfolio. Copper is the backbone of the energy transition—every wind turbine, solar panel, EV, and grid upgrade demands massive copper tonnage. The average electric vehicle uses 183 pounds of copper versus 55 pounds in internal combustion engines. Data centers require 3-5x more copper per megawatt than traditional facilities.

This positions copper as both a grid risk hedge and an infrastructure beneficiary. When power grids strain under AI and electrification demand, copper prices often signal the stress before utilities do. When governments deploy infrastructure spending to upgrade aging systems, copper demand spikes first.

Unlike mining stocks that carry operational risk and dilution concerns, CPER captures pure commodity exposure. It shines during supply crunches, Chinese stimulus cycles, and periods when real assets outperform financial assets. It struggles when global growth slows or when the dollar strengthens aggressively, as copper is priced in dollars globally.

Top Holdings

CPER doesn't hold traditional securities—it owns copper futures contracts that roll monthly. The fund typically holds:

• Near-month COMEX copper futures (primary exposure)
• Next-month contracts during roll periods
• Cash collateral earning Treasury rates

The futures structure means CPER captures spot copper price movements while managing contract expiration through systematic rolling. During backwardation (spot > futures), rolling generates positive yield. During contango (futures > spot), rolling creates drag.

How It Fits the Portfolio

CPER functions as a pure commodity allocation within the real assets sleeve, typically 1-3% of total portfolio depending on regime signals. It pairs naturally with energy infrastructure (copper powers the grid) and precious metals (both benefit from dollar weakness).

I watch copper futures curves closely—steep backwardation often signals supply stress worth exploiting. Contango above 5% annualized suggests patience until curves normalize. CPER works best as a tactical trade around supply/demand inflection points rather than a core long-term holding, given the futures structure and volatility.

Regime Signals

CPER outperforms during Chinese growth acceleration, US infrastructure spending cycles, and periods of dollar weakness. Copper often leads industrial metals higher when global PMI data inflects upward. The commodity also benefits from supply disruptions in Chile and Peru, which control 40% of global mine production.

Rate cuts typically support copper through weaker dollar dynamics and growth expectations. However, copper can struggle initially if cuts signal recession fears. The metal performs best when cuts occur from restrictive levels while growth remains resilient—exactly the soft landing scenario where infrastructure spending accelerates while financial conditions ease.

Related Research

• Alabama Power Grid Risk Assessment
• Exxon Mobil (XOM) Tollbooth Analysis
• COPX: Global X Copper Miners ETF
• Chevron (CVX) Tollbooth Analysis
• ConocoPhillips (COP) Tollbooth Analysis

Frequently Asked Questions

Is CPER a good way to invest in copper?

CPER uses an optimized roll strategy across multiple copper futures contract months, which reduces (but does not eliminate) the contango roll drag that destroys value in funds like USO and UNG. This makes CPER a better long-term commodity vehicle than single-contract funds. However, for multi-year copper exposure, mining equities like COPX typically deliver superior returns because miners benefit from operating leverage, dividends, and production growth.

What is the expense ratio of CPER?

CPER charges a 0.65% management fee. The fund uses the SummerHaven Copper Index, which employs a dynamic roll strategy selecting futures contracts based on the shape of the copper futures curve. This intelligent roll methodology reduces contango drag compared to naive front-month rolling. The total cost of ownership includes both the management fee and any residual roll costs.

How does CPER compare to COPX?

CPER tracks copper commodity prices directly through futures, while COPX holds copper mining equities. CPER provides purer copper price exposure without company-specific risks, but lacks the operating leverage and dividend income that mining stocks offer. During copper bull markets, COPX typically outperforms CPER by 1.5-2x due to miner leverage. During copper corrections, CPER may hold up better than miners. The choice depends on conviction level and desired volatility.

When should investors use CPER?

CPER is most appropriate for investors who want copper price exposure without equity market risk — for example, as a portfolio diversifier or inflation hedge. It is also useful for short-to-medium term tactical trades on copper prices when you want cleaner commodity exposure than mining equities provide. For the Energy Macro framework, CPER can complement a COPX position by adding non-equity copper exposure.

For our complete allocation framework across real assets, infrastructure, and income strategies, see The Blackout Fortune Playbook.

Last updated: February 1, 2026 | Data: Yahoo Finance, ETF provider filings