Exchange-traded commodities (ETC) can be a great way to get exposure to a particular asset or a group of assets that I’d struggle to access as a normal retail investor. They aren’t necessarily passive in nature and can actually provide me with a great edge for my overall portfolio. Here’s one example I like at the moment that has vastly outperformed the FTSE 100 in recent years.
Sharing the details
I’m referring to the iShares Physical Gold ETC (LSE:SGLN). To be clear, an ETC is very similar to an ETF, in that it’s traded on the stock exchange. The main difference is that ETCs usually track commodities, whereas ETFs focus mostly on stocks.
As the name suggests, this ETC provides investment exposure to physical gold — the company that runs the ETC actually owns the gold. Over the past five years, the share price has risen by an impressive 52%. This contrasts to the FTSE 100, which has gained 17%…
