Exchange Traded Commodity
From ACT Wiki
Investment - securities - commodities.
Exchange Traded Commodities are tradeable securities backed by a direct investment by the issuer in commodities or commodities derivative contracts.
Accordingly, the price of the ETC is closely linked to the price of the underlying commodity - or commodity index.
An advantage of ETCs for investors - particularly retail investors - is that they give exposure to the market price of a commodity - or a commodity index - without the need for the administration and cost of managing derivative or other contracts.
These tasks are undertaken by the issuer.
Source: London Stock Exchange Group