ETF základy
Commodity ETFs and Gold via ETC: How to Invest
Key takeaways
- Commodity ETCs allow investment in gold, silver, or oil without physically holding them.
- Physically backed gold ETCs are safer than synthetic ones — the assets are held in vaults.
- Gold has historically served as insurance during equity market downturns, but its return is uncertain.
- Commodities carry no coupon or dividend — all returns depend on the price movement of the underlying raw material.
- A commodity allocation greater than 5–10% of a portfolio tends to be speculation rather than diversification.
Commodity ETCs and ETFs allow you to gain exposure to gold, silver, oil, or natural gas through an exchange-traded product — without a physical warehouse, delivery, or insurance. They are instruments for investors who want commodities as diversification, not as a core investment.
How commodity ETCs work
An Exchange-Traded Commodity (ETC) is a debt instrument issued by a provider that holds either physical commodities (gold, silver in vaults) or commodity derivatives (futures on oil, gas). Physically backed ETCs are considered safer because a real asset exists as collateral. Synthetically secured ETCs carry counterparty risk — if the counterparty fails to fulfil its obligation, it can complicate the product's value.
Gold in a portfolio
Gold is the most popular commodity for individual investors. It has historically been regarded as a store of value and insurance against economic uncertainty. During turbulent market periods, gold prices tend to be less correlated with equities than other asset classes. But beware:
- Gold carries no yield — no coupon, no dividend
- The price can stagnate for entire decades
- Gold's historical real return is low — approximately at the level of inflation
How much commodity exposure in a portfolio?
Most passive investors hold 0–10% in commodities. A small commodity allocation can reduce the overall portfolio volatility. More than 10% edges towards speculation. Bear in mind that a global equity ETF such as MSCI All World already contains companies that extract and process commodities — pure commodity exposure can thus overlap. Portfolio construction basics are in the ETF guide.
This is not investment advice.
FAQ
How do I buy gold via an ETC?
Through a broker you buy an ETC on the exchange just like a stock or ETF. Physically backed ETCs from large issuers hold actual gold bars in vaults. No physical delivery of gold takes place — you sell the ETC back on the exchange.
Is physical gold or an ETC better?
It depends on the situation. Physical gold coins or bars are tangible but expensive to store and insure. An ETC is cheaper, more liquid, and easier to trade. For most investors with a small commodity allocation, an ETC is the more practical option.
How is gold via an ETC taxed?
Gains from selling an ETC are subject to standard tax rules for securities. It is income from the sale of a security, not specifically a gold-related income. We recommend consulting a tax adviser for your specific situation.