5 ETFs For a Copper Rebound

Wow, Dr. Copper needs a doctor himself. Slumping for a six consecutive day, the red metal and preferred economic indicator of many a pundit is once again testing 14-month lows. Slowing economic growth or speculation thereof in China will do that. Assuming the best and that is the U.S. and other major global economies do not walk down Double-Dip Recession Avenue, copper could rebound and that rebound is likely to both profitable and volatile. Of course, that rebound must aided by China buying more copper and whether or not that happens remains to be seen. That said, there might be some value to be had with copper fare for the more adventurous among us. So have a look at these ETFs in addition to the usual suspect: The iPath Dow Jones-UBS Copper TR Sub-Index ETN JJC. Global X Copper Miners ETF COPX: The Global X Copper Miners ETF is a fine idea for those looking for a bit more of a global spin on copper equities without excessive exposure to Freepor-McMoRan FCX. Canada and the U.K. account for 59% of the fund's country weight. Support held just over $10 and that implies a break below $10 would be a technical disaster. First Trust ISE Global Copper Index Fund CU: Pick your poison between COPX and the First Trust ISE Global Copper Index Fund, though you don't need both in your portfolio at the same time. CU also features roughly 59% exposure to Canada and the U.K. and in a “risk on” environment, we would like the fact that Rio Tinto RIO is the ETF's largest holding. CU has slightly outperformed COPX over the past 90 days, though that isn't saying much. PowerShares DB Base Metals Fund DBB: The PowerShares DB Base Metals Fund tracks an index comprised of aluminum, copper and zinc. Not places one wants to be in a bad economy, but that also bodes well for the fund's performance should positive economic start flowing in earnest. Beware this chart is very ugly. A move below $18 probably takes DBB back to the 2010 low of $16.74. iShares MSCI Chile Investable Market Index Fund ECH: How intimately tied to copper prices is the lone Chile-specific ETF on the market? Well, JJC is down about 30% in the past three months while ECH is down 33%. Yes, that qualifies as intimate and those are the breaks when investing in the world's largest copper producer, which is in fact Chile. iShares MSCI Peru All Capped Index Fund EPU: By comparison, EPU has held up nicely against other emerging markets and Latin American ETFs in recent months. To boot, the ETF has not shown a deep correlation to copper futures in that time, but Peru is the third-largest copper producing country in the world and that makes EPU one to watch for a copper rebound.