Listed securities that are linked one-to-one to the price of one – for example: Grain – or several commodities. The term thus refers, contrary to what the name suggests, to issued securities. If the issuer of such a security becomes insolvent, the investor risks losing the capital invested. – Precious metal ETCs are often physically deposited with the respective metal – gold, silver, platinum – with the issuer, so that any risk of loss is limited. In addition, some of the precious metal ETCs, which are also popular with small investors, also have a currency hedge. Shifts in the exchange rate, especially between USD and EUR, are thus largely absorbed. – See bond, index-linked, precious metal funds, issue, indexed, financialization, index tracking, index funds, inflation bonds, commodity funds.
Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/