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Exchange-traded commodity

German: ETC

An exchange-traded security tracking a single commodity – often structured as a note or trust rather than a fund.

In Europe, UCITS rules stop funds from holding a single commodity, so gold, silver or oil are offered as ETCs – debt securities, often backed by physical metal. In the US, gold is usually held through grantor trusts like large gold ETFs, and oil through futures-based funds. ETNs are unsecured notes and carry the issuer’s credit risk.