ETC List     Performance     Physical Exposure     Metal Bar List Audit
Overview     How to Buy & Sell     Brokers     Market Makers     Fees & Charges     Exchanges
Product Lists     Product Fact Sheets     Metal Bar List Audit     Prospectus     Accounts    Newsletter
2009     2008
ETF Securities
About Us Contact Us Sitemap
ETF Securities
Exchange:  
Quick Links
How to Invest
Fact Sheets
Prospectus
Newsletter
Contact Us
About ETCs
Introducing ETCs  |  Benefits of ETCs  |  Total Return

Introducing ETCs

Investment objective ETCs track commodities - not commodity companies - and enable investors to gain exposure to commodities without trading futures or taking physical delivery
Type of security Redeemable preference share with an entitlement to metal
Market makers More Information
Issue size ETCs are open-ended
Current offerings ETFS Metal Securities Australia Ltd - ETCs tracking physical precious metal stored in HSBC's bullion vault (first issued in 2009)


Benefits of ETCs

Accurate ETCs accurately track the underlying commodity index or individual commodity
Liquid ETCs are open-ended securities, and therefore are not limited to on-exchange volumes
Accessible ETCs are traded and settled on regulated stock exchanges, the same as any equity, and can be purchased and held in ordinary brokerage or custodial accounts
Simple ETCs do not involve any of the difficulties with buying and then managing a futures position (eg. worrying about margin calls, contracts expiring and rolling positions) or in buying and storing physical commodities
Transparent ETC pricing is based on a transparent formula with the pricing updated daily on the ETF Securities website
Guaranteed pricing ETCs are priced using published settlement prices (rather than "best-efforts" pricing)
Flexible Investors can go long or short ETCs, and they are lendable and marginable
Proven record ETCs are managed by the same team which created the world's first exchange traded commodity; this team has over 4 years experience in developing commodity-backed investments


Total Return

Total Return is not applicable to the ETFS (Physical) Metal Securities. The return on ETFS (Physical) Metal Securities is based only on the Spot Return as these securities are backed by physical metal.

ETCs that provide investors with a total return on commodity indices and individual commodities (including Oil Securities and Commodity Securities) consist of the following three sources of return:

Spot return Changes in price of the front month ("spot") futures contract
Roll return Gain or loss from rolling long futures positions prior to expiry
Collateral return Interest earned on the cash value of the initial investment

Click here to view the Total Return Fact Sheet


NB: Data is from the London Stock Exchange's SEDOL Masterfile.




Terms & Conditions  |   Copyright ETF Securities Ltd 2010  |  Designed by The ADWEB Agency