Exchange-traded commodity
Exchange-traded commodities ( ETC ) are exchange-traded securities , the investors investing in the asset class commodities ( English Commodities allow). They are a special form of certificates : perpetual, secured bonds from the respective issuer.
Offer, trade
ETCs on precious metals have been traded on the Frankfurt Stock Exchange on Xetra since 2006 and now also on the Scoach certificate trading platform . Other trading venues are the Munich and Stuttgart stock exchanges.
With over 110 products, ETF Securities Ltd. the largest provider of ETCs. Other providers are Deutsche Bank with its platform db ETC, Lyxor International Asset Management, a subsidiary of Société Générale, and Deutsche Börse Commodities GmbH with its Xetra-Gold product , on which Deutsche Börse, Deutsche Bank , DZ Bank and among others Vontobel are involved. The Stuttgart Stock Exchange now offers an exchange-traded gold products under the name EUWAX gold in the form of an ETC based on vault gold at.
ETCs on precious metals (gold) and crude oil have the highest trading volume, in addition to other energy sources (e.g. heating oil, natural gas), industrial metals (e.g. aluminum, copper, zinc, nickel) and agricultural goods (e.g. wheat, cocoa, corn, pigs) , Cattle) tradable.
Legal and Risks
ETCs are certificates, i.e. from a legal point of view, bonds issued by the issuer with no maturity limit. However, in contrast to the normal Open End Certificates, the ETCs are physically collateralized with the underlying assets, a basket of securities or precious metals . This reduces the credit risk vis-à-vis the issuer, since in the event of insolvency the investors are entitled to the surrender of the deposited collateral.
In general, ETCs have a three-level structure: On the first level , the issuer is - unlike e.g. B. for certificates - not a commercial bank, but an independent issuing vehicle. The aim is to eliminate the risk that arises from other business areas, such as B. a loan deal. Similar to a fund, the issuer of an ETC corresponds to the fund company.
The second stage is a deposit of the corresponding ETCs. In the case of precious metal ETCs, due to the high value density, the deposit usually takes place via the metal itself; for example, gold ETCs are backed and secured with gold .
The third stage is to ensure that if the issuer defaults, the deposit is reserved exclusively for the holders of ETC Securities. This is achieved by outsourcing the deposited precious metal to a trust company.
Overall, the three levels should make an ETC as secure as an exchange-traded fund (ETF).
If ETCs are secured by futures on the corresponding commodity, risks could arise from roll effects.
Costs, Prices and Derivatives
Investors bear the costs for the physical storage of gold, for example. Management fees are added as additional cost components.
The prices of the ETCs are based on the price of the respective underlying . In many cases, however, the raw materials are not actually acquired, but are traced through synthetic replication with the help of swaps .
With ETCs, investors can bet on both rising and falling prices of the underlying asset ( short ETCs). Moreover, there are so-called leveraged (English leveraged ) ETCs having implicit by the use of leverage a higher volatility.
Differentiation of ETFs
Similar to exchange-traded funds (ETF), ETCs can also be traded every trading day - for example during the entire trading period on Xetra. In contrast to ETCs, however, ETFs are investment fund shares, i.e. they relate to a special fund .
Web links
See also
Individual evidence
- ↑ Deutsche Börse: ETC Exchange Traded Commodities ( Memento of the original dated July 12, 2008 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ EUWAX Gold. Stuttgart Stock Exchange, accessed on January 10, 2017 .
- ↑ a b '' ETC Getting Started ' ( Memento of the original from January 30, 2012 in the Internet Archive ) Info: The archive link has been inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. . Website of db-X ETC, Deutsche Bank. Retrieved December 26, 2011.
