New Copper ETF Off to Decent Start...Sort Of

The newly minted United States Copper Fund CPER, the first ETF offering investors exposure to Comex-traded copper futures, may not seem like the type of ETF for a risk-off environment, but the fund is off to a decent start in terms of collecting assets under management. Despite a drop of almost 6% since its Nov. 15 debut, CPER has raked in almost $2.4 million in AUM. CPER tracks a portfolio of copper futures contracts backed by 3-month U.S. Treasury Bills. The ETF's portfolio is currently comprised of March, April, and December 2012 contracts. Going forward, CPER's success with investors could hinge on its ability to outperform the iPath DJ-UBS Copper TR Sub-Index ETN JJC. JJC has an expense ratio of 0.75% compared to 0.95% for CPER.