Exchange Traded Commodities (ETCs)
Exchange Traded Commodities (ETCs)ETCs track the performance of commodities
Exchange Traded Commodities (ETCs) track the performance of an underlying commodity, commodity future or commodity index. Like shares and ETFs, they are continuously traded during all trading hours on Xetra®. This offers investors quick and transparent access to the key commodities without them having to purchase forward contracts or take physical possession of the commodities. As with shares and ETFs, investors can make use of market, limit and stop-loss orders when trading with ETCs. The minimum trade size is one security.
ETCs are similar to Exchange Traded Funds (ETFs) and include many of the same advantages. They have an open structure, are cost-effective and pricing is transparent. ETCs are open-ended, traded continuously on the exchange and, moreover, offer a high degree of liquidity. Legally however, ETCs constitute undated notes from the respective issuer and not special assets in the form of a fund structure.