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Tom Lydon, ETF Trends (180 clicks)
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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 (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

Source: ETF Spotlight: iPath DJ AIG Copper Total Return Sub-Index ETN