ETF Spotlight on iPath DJ AIG Copper Total Return Sub-Index ETN (NYSEArca: JJC), part of a weekly series.
Assets: $141 million
Objective: JJC tracks the Dow Jones-AIG Copper Total Return Sub-Index, which is designed to reflect the performance on copper contracts. The index is made up of Copper High Grade futures traded on the New York Commodities Exchange. (5 ETFs for a global recovery).
What You Should Know
- JJC has a 0.75% expense ratio
- JJC is an exchange traded note (NYSE:ETN), which means that it’s a debt instrument backed by the credit of the issuer
- With ETNs, you are taxed only upon sale; Short-term capital gains rates apply if held for less than one year; long-term capital gains rates apply if held for more than one year
- ETNs have no tracking error – this risk is borne by the issuer, not the investor
The Latest News
- Copper prices rallied to a 14-month high Wednesday, thanks to a weakening dollar and economic expansion in both emerging and developed markets (Will copper ETN be hit?)
- Copper’s record of $8,490 was reached in July 2008; today, they’re around $7,100
- The price of copper is on pace to have its biggest annual gain since 1978
- Copper made up 54% of the total value of Chile’s exports in October, up from 42% the same time last year
- JJC is up 124.7% year-to-date