S&P Dow Jones Indices has announced that its S&P GSCI Cash Copper Index, a commodity-based benchmark tracking the value of copper, has been licensed to Mirae Asset Global Investments to serve as the basis for an exchange-trade fund (ETF) to be listed on the Korea Exchange.
The S&P GSCI Cash Copper index has been licensed to Mirae Asset Global Investments to serve as the basis for an ETF.
The S&P GSCI Cash Copper seeks to track the return of an investment in physical copper on a daily basis by valuing the holding of physical copper, after taking into account the daily rent associated with storing the metal in a warehouse approved by the London Metals Exchange (LME).
The index is part of the S&P GSCI family, which is one of the most widely recognised series of commodity measures to represent the global commodity market beta.
“Copper has become one of the most interesting and exciting themes for investors worldwide given its direct linkage to electronics, technology and industrial development,” said Reid Steadman, Head of Global ETF Licensing at S&P Dow Jones Indices. “We are pleased to license the S&P GSCI Cash Copper to Mirae Asset Global Investments, one of Asia’s leading financial services companies.”
“We are proud to create the first physical copper ETF product in Asia Pacific region,” added Joo Young Yun, Head of the ETF Division at Mirae Asset Global Investments. “Copper presents a highly noteworthy investment proposition, and we are delighted to be able to offer it to our clients in an easily investable form.”
UK and European investors are able to gain exposure to copper via a number of exchange-traded products (ETPs). These include the ETFS Physical Copper (PHCU) and ETFS Copper (COPA) from ETF Securities, the db Physical Copper ETC (XCO1) from Deutsche Bank, all listed in the London Stock Exchange, and the Source Copper T-ETC (SCOPP) from Source, listed on the Deutsche Börse (Xetra) and SIX Swiss Exchange.
For more information about the S&P GSCI Cash Copper index please see: ‘Taking a shine to copper’.