Copper ETF: What is it and How to Invest in Copper in India?

In the modern economic world, copper has its own significance apart from gold and silver. Copper is used extensively across many industries, such as power, construction, transport and electronics and these industries are the backbone of any economy. One of the advantages of today’s economic ecosystem is that investors can gain commodity exposure without directly holding physical assets. They can do so by exploring copper-related investment options through market-linked instruments. A copper ETF offers one such route.

In this article, we will understand what a copper ETF is, how copper demand is evolving, and the related investment avenues available in India. We also discuss price-influencing factors and possible alternatives such as silver and gold ETFs.

Table of contents

• What is a copper ETF?
• Why is copper in demand?
• Factors affecting copper prices
• How to invest in copper in India?
• Alternatives to copper: Silver and Gold ETFs
• Invest in commodities through Bajaj Finserv Multi Asset Allocation Fund

What is a copper ETF?

Exchange-traded funds (ETFs) are investment vehicles that trade on stock exchanges just like individual shares. A copper ETF is designed to track the price of copper, a widely used base metal that plays a critical role across multiple sectors of the economy. Through these ETFs, investors can participate in copper price movements without the hassle of physically buying, storing or securing the metal.

Depending on the fund’s structure, copper ETFs may hold physical copper or invest in copper futures contracts. However, in practice, most copper ETFs are futures-based and track copper prices through commodity derivatives rather than holding physical copper.

This combination of commodity exposure and stock market convenience makes copper ETFs potentially suitable for both new and experienced investors seeking portfolio diversification.

Also Read: SIP in ETF: Meaning, Benefits, Challenges & How It Works

Why is copper in demand?

Copper is a vital component of modern industry and technology. The metal is extensively used in electrical wiring, plumbing and roofing and is also a key material in electronics such as circuit boards, semiconductors and other electronic components.

After sharp price increases in gold and silver, copper started rallying 2025, with domestic copper prices increasing by approximately 50%-60% last year. This growth has been supported by strong demand from electric vehicles, renewable energy projects, and clean power infrastructure. At the same time, copper supply has stayed tight due to years of low investment in new mining projects.*

The copper price outlook for 2026 is mixed but generally supportive of elevated levels compared with pre-2025 trends. Continued demand from energy transition and technology sectors may sustain the market. However, volatility and pricing adjustments may occur in the near-term.

*Source: Money Control, ‘Copper rally may have more room to run, here's how investors can play it’; January 28,2026.

Supply pressures are increasing

Global copper supply faces structural pressures because investment in new mining capacity and project development has lagged rising demand. The UN Trade and Development (UNCTAD) highlights that supply is struggling to keep pace with demand due to long development timelines, declining ore grades, and the need for many new mines and substantial investment to avoid bottlenecks in future clean energy and digital projects. Without faster permitting and expanded production, supply could fall significantly short of

demand through 2030 and beyond.

Source: The UN Trade and Development (UNCTAD) Global Trade Update, May 2025.

Energy transition is driving demand

The global energy transition is also a key driver of copper demand. According to the International Energy Agency (IEA), copper is critical for electricity-related infrastructure; demand from clean energy technologies — such as renewables, electrified transport, and grid modernization — is projected to rise substantially over the next decade as nations pursue climate goals.

Factors affecting copper prices

Copper prices are influenced by a mix of global economic and market-driven factors—ranging from industrial activity and infrastructure expansion to clean energy adoption, currency movements, and shifts in worldwide demand for electrification-related metals.

• Global economic growth
• Infrastructure spending
• EV demand
• Renewable energy projects
• Global industrial demand
• Dollar movement

Also Read: How To Invest In ETFs In India? Beginners Guide

How to invest in copper in India?

India does not have a dedicated copper ETF, but investors can access the metal through the following routes:

• Copper stocks: The most straightforward option for retail investors. You can invest in Indian companies that are involved in copper production or processing.
• Copper futures: For direct exposure to copper prices, investors can trade copper futures on the Multi-Commodity Exchange (MCX). This option carries relatively higher risk and may be suitable for experienced investors.
• Commodity and metal sector funds: Commodity-focused mutual funds or metal sector ETFs may offer indirect exposure to copper. These funds invest in shares of companies involved in metals and mining, which may include copper producers and processors. However, they do not track copper prices directly.
• Global copper ETFs or mining stocks: India does not currently have a dedicated copper ETF, but investors can invest in overseas copper ETFs or global mining companies.

Alternatives to copper: Silver and Gold ETFs

In the absence of a copper ETF in India, investors may consider precious metals such as gold and silver as alternatives for portfolio diversification. Gold is typically seen as a store of value and is often influenced by factors like inflation expectations, interest rates, and global uncertainty. Silver, on the other hand, has both investment and industrial uses, which can make it more sensitive to economic cycles than gold. At the same time, it is considered less volatile than copper because a portion of its demand comes from investment and jewellery segments, which may provide some support even when industrial activity slows.

Copper prices, in comparison, are more closely tied to global manufacturing, construction, and infrastructure cycles, making them more directly exposed to sharp shifts in economic growth expectations.

Another potential advantage of investing in Gold ETFs and Silver ETFs is the ease of buying and the relatively lower cost and hassle of storage compared to purchasing physical metals. These ETFs typically invest in metals of prescribed purity standards and are held with authorised custodians, which may reduce concerns such as storage risks and theft associated with physical holdings.

Gold and silver ETFs are highly liquid and can be bought or sold on stock exchanges during market hours. They also help diversify a portfolio, as precious metals usually move differently from stocks and bonds. Gold and silver ETFs are simple to invest in, transparent in pricing, and may be suitable even for small investments.

Also Read: ETF vs FOF: Key Differences and Which is Better Investment?

Invest in commodities through Bajaj Finserv Multi Asset Allocation Fund

Investors seeking indirect exposure to commodities within a diversified and professionally managed portfolio may consider the Bajaj Finserv Multi Asset Allocation Fund. As part of its commodity allocation, the fund invests in Gold ETFs and Silver ETFs, which help provide diversification benefits and may act as a hedge during periods of market uncertainty.

A multi asset allocation fund is a type of mutual fund that invests across multiple asset classes, such as equity, debt and commodities. The goal is to create a more balanced portfolio by spreading investments across assets that may perform differently under various market conditions. This diversification may help reduce overall volatility compared to investing in a single asset class.

Depending on market conditions and internal asset allocation strategy, the Bajaj Finserv Multi Asset Allocation Fund also adjusts its exposure to gold and silver within the permitted limits, with the aim of managing risk, capturing potential growth opportunities and aligning the portfolio with evolving macroeconomic trends such as inflation expectations, currency movements, and global commodity cycles. For more information about the scheme and for statutory details, click here.

Conclusion

Copper is an important industrial metal that is widely used in infrastructure, energy, and technology. Although India currently has limited options for direct Copper ETFs, investors may consider international investments or other copper-linked instruments to gain exposure.

Investors looking for commodity exposure may also explore gold and silver ETFs as alternatives. While gold is often viewed as a store of value, silver has both investment and industrial demand drivers, which can make it behave differently across market cycles. Including precious metals may also help with diversification. Silver and gold also tend to be less volatile than copper.

Like all market-based investments, commodity prices can be volatile and are affected by global factors. Before investing, it is important for investors to assess their risk tolerance, investment goals, and overall portfolio diversification to decide whether such investments are suitable for them.

Frequently asked questions:

Is there any mutual fund for copper?

There are no domestic mutual funds in India that invest exclusively in copper. Exposure is usually indirect through global funds or mutual funds/ETFs investing in commodities.

How can I invest in copper in India?

Investors may consider international ETFs, commodity mutual funds, mining stocks or copper futures on commodity exchanges.

Are Copper ETFs risky?

Copper ETFs are subject to commodity price volatility, global economic conditions and currency risk. As a commodity, copper tends to be highly volatile.

Is a copper mutual fund good for long-term investment?

Copper-linked funds may offer potential opportunities during commodity upcycles, but suitability depends on individual goals and risk tolerance.

Are there Copper ETFs in India?

Currently, there are no copper ETFs listed on Indian stock exchanges.

How to buy global copper ETFs in India?

Global copper ETFs may be accessed through international investment platforms. Investors can also check if any international Funds of Funds in India have allocation to overseas copper stocks.