Copper Total Return Sub-Index ETN (JJC) (图)

ETF Spotlight: iPath DJ AIG Copper Total Return Sub-Index ETN (JJC) December 02, 2009 at 2:00 pm by Tom Lydon 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 today, 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