Tariffs Pushed CPER Up 39%, Doubling S&P 500 Returns

"While investors chased artificial intelligence stocks and cryptocurrency throughout 2025, a commodity fund quietly delivered returns that rivaled the market's biggest winners. The United States Commodity Index Funds Trust ( NYSE:CPER) surged 39% last year, matching NVDA's performance and more than doubling the S&P 500's 16% gain. CPER tracks copper futures contracts, providing exposure to the industrial metal without mining company operational risks."

"Copper prices accelerated dramatically in the second half of 2025 after the administration implemented a 50% tariff on copper imports effective August 1. The July announcement sent shockwaves through commodity markets as traders priced in potential supply constraints. CPER gained 8.3% in December alone while the Nasdaq 100 ETF declined 0.5%. Tariff policy remains the dominant macro factor for copper. Any modification to import duties, expansion to additional countries, or retaliatory trade measures could swing prices substantially."

"The fund uses a rules-based approach to select contracts across multiple maturities, optimizing its portfolio monthly based on the futures curve shape. With a 1.06% expense ratio and over $326 million in assets, it offers straightforward copper price access for investors who believe the energy transition and infrastructure buildout will drive demand higher. The London Metal Exchange copper price provides the clearest signal of evolving supply and demand dynamics."

CPER is an ETF that tracks copper futures contracts, offering exposure to copper prices without mining operator risk. The fund surged 39% in 2025, matching NVDA and more than doubling the S&P 500's 16% return. A 50% U.S. tariff on copper imports effective August 1 sharply accelerated prices after a July announcement. CPER rose 8.3% in December while the Nasdaq 100 ETF fell 0.5%. Tariff policy remains the main macro driver for copper prices and can change supply expectations. The fund employs a rules-based, multi-maturity contract selection, has a 1.06% expense ratio, and manages over $326 million. EV production and data center construction are key demand drivers increasing copper consumption.

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