Exchange-Traded Commodity | ETC 

An ETC (Exchange-Traded Commodity) is a type of exchange-traded product designed to track the price of a commodity, such as gold, silver, oil, or natural gas.

It allows investors to gain exposure to commodities without physically buying and storing them.

How ETC works with example: 

An ETC usually tracks the price of one commodity or a small group of commodities.

A value formula often used is similar to fund pricing:

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ETC Value per Unit = Net Value of Commodity Holdings / Number of Units

Real-Life ETC Example

If gold rises from $2,000 to $2,200 per ounce, a gold ETC that tracks gold may also increase in value.

Why ETC is important

• Easy access to commodity markets

• No need to store physical commodities

• Useful for diversification

• Popular for hedging against inflation