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An Exchange Traded Commodity (ETC) is an investment vehicle that tracks the performance of an underlying commodity or basket of commodities. It is a variation on the Exchange Traded Fund (ETF) that was first introduced in the US in 1993 and launched in Europe in 1999.

ETCs work on the same principle as ETFs - with the ETC tracking the performance of a single underlying commodity or a group of associated commodities. ‘Single commodity ETCs' follow the price of a single commodity, whilst ‘index-tracking ETCs' follow the movement of a group of associated commodities, such as cattle, energy or metals.

However, the term ETC covers a wide range of different investments, many of which use derivative structures, such as swaps, futures and options, so it is important you read the Prospectus to understand exactly what you are investing in, how it is structured and the risk associated with it.

Equally, and as with any stock market related investment, do remember that the value of your investments and any income from them can go down as well as up. You may not get back the full amount you have invested. Many ETCs are listed in a currency other than sterling and hence returns can be affected by adverse movements in exchange rates.

Be sure to check the Distributor status of any ETCs you plan to purchase: Capital gains in Funds which do NOT have Distributor Status will be treated as income by UK tax authorities and could hence be subject to a higher rate of tax than might apply if they were assessed for Capital Gain Tax purposes.

Our ETC platform enables you to trade ETCs from a wide range of issuers: you'll find details on our ETC Literature page along with useful publications and information from those issuers.

From time to time we'll include interesting items of news from the ETC market on our ETC News page and on the ETC List you'll find details of ETCs, including ‘al least 15 minute delayed' prices (do bear in mind therefore that the price you actually trade at can be different); change since the last market close, and other useful summary information.  Click on the name to see more detailed information.

Buying and selling ETCs costs the same as trading other equities - you'll find dealing charges shown on our Price List.  A range of ETCs are also available within our monthly Regular Investment Service.

Before buying an ETC, however, you should read the Prospectus (available on the issuers' websites) and be sure you understand how it is structured and its risks.