Exchange-Traded Commodity (ETC)

An exchange-traded commodity (ETC) is typically supported by an underwritten note that is collateralized by an underlying asset acquired through the capital invested in the ETC. As a result, ETCs are considered a hybrid of an exchange-traded fund (ETF) and an exchange-traded note (ETN). They offer potential tax and cost-saving advantages similar to ETNs, while also providing risk reduction in the event of an underwriter default.