Exchange-Traded Commodity (ETC)

    An exchange-traded commodity (ETC) is typically backed by an underwritten note collateralized by an underlying asset purchased with the ETC’s capital. As a result, exchange-traded commodities are frequently regarded as a hybrid of an exchange-traded fund (ETF) and an exchange-traded note (ETN). This means that ETCs have some of the tax and cost-saving benefits of ETNs while also providing some risk reduction in the event of an underwriter default.