Samsung Securities Launches Two Copper Futures Investment ETNs

COMEX Copper Futures
Daily Returns Tracking 1x and -1x

[Asia Economy Reporter Ji-hwan Park] Samsung Securities announced on the 24th that it has launched two types of Exchange Traded Notes (ETNs) investing in copper futures.

The ETNs, newly listed in November and 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 used as a core material in eco-friendly industries recently gaining attention, such as electric vehicles and renewable energy. In particular, copper prices tend to be closely linked to the global economy to the extent that they are called an indicator for predicting the global economy. For this reason, it is nicknamed "Dr. Copper" in the commodity market.

Globally, copper demand is expected to structurally increase over the coming years. This is because, as electricity replaces fossil fuels as the main power source, demand for copper, a conductor, inevitably rises significantly. Especially, it is analyzed that copper demand in eco-friendly industries encompassing renewable energy, electric vehicles, power storage facilities, and power grids will continue to increase in the future.

On the other hand, the development cycle of copper mines takes at least 10 years from exploration to production start. Over the past five years, major global copper mining companies have not expanded their production facilities. Samsung Securities explains that global copper production is unlikely to increase significantly for at least the next three years, resulting in a tight supply environment.

A Samsung Securities official emphasized, "We responded to the expanding investment demand in the copper-related market by adding newly listed ETNs to the existing Samsung Leverage Copper Futures ETN(H) and Samsung Inverse 2X Copper Futures ETN(H). Since they are also hedged against currency risk, they can be a good choice for investors considering copper-related investments." The two copper futures ETNs can be traded until October 26, 2026.

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