Understand the structure
Specialist and higher-risk products
Learn why leveraged, commodity and crypto exchange-traded products can behave differently from conventional ETFs.
Leveraged and inverse ETFs: why are they different?
Leveraged ETFs aim to multiply an index’s daily move. Inverse ETFs aim to move in the opposite direction. They normally reset each day, so their longer-term return can differ greatly from a simple multiple or opposite of the index.
Read guide 44Commodity ETFs and ETCs: what is the difference?
You can get commodity exposure through both UCITS ETFs and exchange-traded commodities, or ETCs.
Read guide 45Physically backed ETCs: do I own the metal?
A physically backed ETC gives you exposure to metal held within the product’s structure. You own a security with rights defined in its legal documents. That is different from owning a gold bar in your own name.
Read guide 46What happens if an ETC issuer fails?
The outcome depends on the ETC’s legal structure and the assets supporting it. For a secured ETC, those assets may be used to meet investors’ claims. Recovery can involve delays, costs and losses. Physical backing does not guarantee full repayment.
Read guide 47How do I compare two gold ETCs?
Compare the backing, legal structure, annual charge, trading costs and currency hedging. Two products can follow gold prices while giving you different costs, risks and investor rights.
Read guide 48Crypto exchange-traded products: what should investors understand?
A crypto exchange-traded product provides exposure to a cryptocurrency through a security traded on an exchange. In Europe, these products are generally ETPs or ETNs rather than UCITS ETFs and can involve extreme volatility and structural risk.
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