ETCs

Benefits of Exchange Traded Commodities:

• Easy access the markets – ETCs are traded as Stocks on an exchange
• Low cost (yearly Management Expense Rates as low as 0.39% for some ETCs)
• High liquidity (Matching the underlying commodities physical or futures markets)
• Daily transparent pricing
• No margin calls, need to roll contracts or risk of delivery associated with Futures.

Saxo Bank’s online ETC range

Saxo Bank offers access to ETCs that cover the following categories of commodities: Diversified Broad, Agriculture, Energy, Industrial Metals, Livestock and Precious Metals. The ETCs offered are tradable in the London Stock Exchange and Euronext Paris and cover five different ranges of exposure, which are:

1. Physical ETCs: These are ETCs which are linked to the price of physical precious metals.
2. Classic ETCs: These are the standard ETCs which are linked to an index based on near-month futures contracts.
3. Forward ETCs: These are ETCs which are linked to an index based on forward-month futures contracts.
4. Short ETCs: These are ETCs which are inversely linked to the underlying commodities index.
5. Leveraged ETCs: These are ETCs which are leveraged on the underlying commodities index. The degree of leverage is defined separately for each ETC.