CHAPTER 16

Commodity Funds, ETFs and ETCs

How to buy exposure with one trade

Opening question

“Which is better for gold: an ETF holding bars in a vault or one holding futures?”

In this chapter

The main wrappers: physically backed funds, futures-based funds, ETCs and ETNs
How a physical gold product works, and how fees slowly reduce the metal behind each share
How futures-based funds earn spot, roll and collateral returns
Debt-like structures and the issuer or collateral risk they carry
Vault or futures for gold: a worked comparison
Costs and tracking: fees, roll, spreads, premiums and taxes
A scorecard for choosing a commodity product
What Vietnamese and Asian investors can use

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This chapter is in the full book

Chapter 1 is free to read online. The full text of chapter 16 — with its tables, figures, worked examples and practice lab — is available in the complete edition of Commodity Investing: From Theory to Practice (Volume 2, NXW Investment Library).

Read Chapter 1 free Get the full book — contact@nxw.vn

Sections of this chapter

16.1 One trade, many wrappers

16.2 Physically backed products

16.3 Futures-based funds

16.4 ETCs and ETNs: debt-like structures

16.5 Vault or futures? The gold question

16.6 Costs and tracking

16.7 Structure, tax and regulation

16.8 A scorecard for commodity products

16.9 Commodity products in Vietnam and Asia

← Chapter 15: Commodity Indexes Chapter 17: Commodity Equities and Producers →