The SEC just gave its stamp of approval to a controversial physically-backed copper ETF proposal from J.P. Morgan [profile], and the Wall Street Journal argues that "J.P. Morgan's timing could still be impeccable."

Liam Denning writes that "the new fund would offer a viable alternative" for investors who previously gained copper exposure by investing in Freeport-McMoRan Copper & Gold, as Freeport "is diversifying into oil and gas."

Yet the WSJ also wonders if JPM XF Physical Copper Trust will be worth it. The paper cites a Societe Generale estimate that storage and insurance for the copper behind the ETF could drive its costs up to 400 or 500 basis points annually, even as analysts expect big stock market gains in 2013 and flat copper prices "for the next couple of years". 

Edited by: Neil Anderson, Managing Editor


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