ETFs and ETCs A Revolution of Note

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The lesson for now is that ETCs, along with commodity indices, and commodities futures, have come of age, seemingly just within the past two or three months. As ETF Securities put it, records for ETC inflows were this week shattered as investors continued to seek asset classes "uncorrelated" to listed stocks, or equities.

London-based ETF Securities, an investment manager, recently announced that total assets it held on behalf of clients had grown by $1.7bn, some 30%, in the past 11 weeks, to $6.6bn. What's up, when the investing universe is supposedly slipping and sliding, if not decomposing?

ETFs, or exchange traded funds, have long offered investors an easy, low cost, and efficient, entry into the investment world. ETFs are listed, and trade, on stock exchanges around the world, just as operating companies such as BHP Billiton have long done. ETFs, however, offer no operations as such, and provide the investor, instead, with proxies into various chosen pockets of the investment universe.

Thus, a given ETF may offer the investor a single entry point into a basket of any number of chosen quality listed shares, bonds, or other publicly listed securities. ETFs can also provide an indirect but secure holding of physical gold bullion, without the investor ever needing to see, insure, handle or protect, as such, the physical investment...

The lesson for now is that ETCs, along with commodity indices, and commodities futures, have come of age, seemingly just within the past two or three months. As ETF Securities put it, records for ETC inflows were this week shattered as investors continued to seek asset classes "uncorrelated" to listed stocks, or equities.

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