ETC (exchange-traded commodity)
An exchange-traded security that tracks the price of a commodity such as gold or oil.
In short
As of 8 October 2026An ETC (exchange-traded commodity) is an exchange-traded security that tracks the price of a commodity such as gold or oil. Legally it is a debt security, not a fund, so it is not segregated assets. Many gold ETCs are backed by physical metal. Gains are usually subject to capital gains tax, though some gold ETCs are tax-free after one year.
An ETC lets you invest in commodities such as gold, silver or oil through your brokerage account. Unlike an ETF, an ETC is not a fund but a debt security of its issuer, so it is not segregated assets.
Many gold ETCs are backed by physical metal, which reduces issuer risk. Gains are normally subject to capital gains tax, with no partial exemption. For some gold ETCs with a delivery claim, gains are tax-free after a one-year holding period, but that depends on the product's design. Commodities pay no dividends and can swing strongly, as volatility shows.
Example: a gold ETC rises when the gold price rises and falls with it. A related product is the ETN, which tracks things like cryptocurrencies.
Sources
As of 8 October 2026 · Educational content, not investment or tax advice.