Australia's exchange-traded fund (ETF) sector has further expanded with 10 exchange-traded commodities (ETC) now listed on the Australian Securities Exchange (ASX), the largest single listing of exchange-traded products on the ASX.
The number of ETCs has increased to a total of 15 after ETF provider ETF Securities made the addition to present a more comprehensive range to investors.
The new additions cover agriculture, diversified commodities, energy and industrial metal ETCs, while prior existing ETCs comprised only precious metals.
"Historically, gaining exposure to this asset class was typically achieved by investing in the shares of mining and resource companies or, for investors with adequate expertise, commodity futures markets," ETF Securities Asia-Pacific managing director Fred Jheon said.
"ETCs provide a convenient, transparent and liquid solution to investors seeking more direct exposure."
The 10 ETCs are structured as deferred purchase agreements and are designed to reflect the performance of the Dow Jones-UBS Commodity Index and its sub-indexes.
ETF Securities will further expand its commodity suite of products over the next 12 months, as well as develop its offer into non-commodity areas.
ETCs are open-ended securities and either backed by allocated bullion or fully collateralised.
