Samsung Securities Launches Two Types of Copper Futures Investment ETNs

[Asia Economy Reporter Ji-hwan Park] Samsung Securities announced on the 18th that it has launched two types of Exchange Traded Notes (ETNs) investing in copper futures.

The newly listed ETNs this month, based on copper futures as the underlying asset, are Samsung Copper Futures ETN(H) and Samsung Inverse Copper Futures ETN(H), which track the daily returns of the New York Mercantile Exchange (COMEX) copper futures at 1x and -1x respectively.

Copper is the most important industrial material across various industries and is a key material in eco-friendly industries recently gaining attention, such as electric vehicles and renewable energy. In particular, copper prices are closely linked to the global economy to the extent that they are considered an indicator for predicting the global economy. For this reason, copper is nicknamed "Dr. Copper" in the commodity market.

According to "Copper: Beauty Comes with Time," published by Samsung Securities Research on May 12, global demand for copper in eco-friendly industries is expected to structurally increase over the coming years. As electricity replaces fossil fuels as the main power source, demand for copper, a conductor, is bound to rise significantly. Especially, copper demand in eco-friendly industries encompassing renewable energy, electric vehicles, power storage facilities, and power grids is expected to continue increasing.

Compared to the increase in demand, the development cycle of copper mines is quite long, taking at least 10 years from exploration to production start. Nevertheless, over the past five years, major global copper mining companies have not proactively expanded production facilities, and global copper production is unlikely to increase significantly for at least the next three years, so a tight supply environment is expected to continue.

However, since copper has been highly correlated with China's economy, short-term issues such as demand slowdown due to the cooling of China's real estate market require close observation. Additionally, it is necessary to consider that copper production, which had shrunk due to COVID-19, is rapidly normalizing recently.

A Samsung Securities official stated, "We aimed to respond to the expanding investment demand in the copper-related market by adding the newly listed ETNs to the existing Samsung Leverage Copper Futures ETN(H) and Samsung Inverse 2X Copper Futures ETN(H)." He emphasized, "Since they are also currency-hedged, Samsung Securities ETNs would be a good choice for investors considering copper-related investments."

The two copper futures ETNs issued by Samsung Securities this time will be tradable until October 26, 2026.

This content was produced with the assistance of AI translation services.