TTC shares can fluctuate throughout the day, depending on which commodity they are tracking.
ETC performance is influenced by one of two things: the spot price for the underlying commodity or the futures prices.
Small investors could not access the commodities market until 2003 due to the high minimum investment requirements. Even small investors can now invest in commodities with the ETC. Investors can diversify their portfolio to increase portfolio performance.
ETC, although it is a debt instrument can be relatively safe. ETC is a debt instrument that provides collateral. This can be in the form either of the commodity being traced or in investments in securities with high creditworthiness. The collateral can be used to recover the investor's investment in the event of default by the issuer.
No logistical issues
An investor who buys shares in an ETC does not purchase the actual commodity. Investors don't need to store the commodity. Imagine how difficult it would have to explain all your cattle to neighbors.
Less expense ratio
An ETC is managed passively by a fund manager. As a result, the ETC is managed passively by the fund manager. This results in a lower management fee (also called the expense ratio) than other actively managed funds.
ETCs can be listed today on major stock exchanges around the globe. They cover most commodities. Below are the exchange-traded commodities available for investors.
1. Bullion, such as gold or silver
2. Metals like zinc, copper and aluminium.
3. Natural gas and oil are two of the most important energy sources.
4. Livestock include feeder cattle, live cattle and pork bellies.
5. Cereals, pulses and grains like wheat, maize and barley are all available.
6. Spices like cumin, turmeric, pepper, and pepper
7. Oils and oilseeds, such as castor oil or palm oil, cottonseed oil or soybean oil.
ETCs provide a wide range of commodities that you can invest in, as you can see.
A commodity that is traded on the exchange can be a great investment vehicle. Keep track of the news about your commodity to get the best results.