A new report from Aite Group, LLC examines the relatively new phenomenon that is exchange-traded commodities (ETCs). The report introduces the appeal of ETCs and maps their growth potential, explores the key product sponsors and their relative structures, and delves into ETC architecture, including cost components.
The first exchange-traded commodities (ETCs), were introduced in the United States in 2003. Like exchange-traded funds (ETFs), ETCs are growing rapidly, driven by factors such as the current bull market for commodities and the fact that brokers and investment advisors are enamored with the low cost and diverse range of products available to build or supplement their client portfolios, among other factors. As a result, Aite Group anticipates that exchange-traded commodities will grow from US$36 billion in assets today to US$247.8 billion by 2012.
"Exchange-traded commodities will share the growth experienced by exchange-traded funds, and will remain — and evolve — in the global market because the product serves a previously unmet need in the marketplace," says Denise Valentine, senior analyst with Aite Group and author of this report. "As ETCs solidify their position in the market, investors will seek those generated by stable sponsors, product innovation and the issuers’ ability to attract market makers."
This 38-page Impact Report contains 16 figures and nine tables. Clients of Aite Group’s Institutional Securities & Investments service can download the report by clicking on the icon to the right.
Related Aite Group Research:
– The Securitization Endgame: ABS Collateralized Debt Obligations
– OTC Derivatives Processing: Life on the Edge
– A Q&A With Hedge Funds
– Electronic FX: Welcome to the Banks’ Neverland