ETF publications and knowledge

Xetra is the largest trading venue for ETFs in Europe with the most listed products and the highest trading volume. Designated Sponsors continuously set buy and sell prices for this asset class, which is also becoming increasingly popular with private investors.

About ETF, ETN, ETC and ETP

ETFs are exchange-traded index funds - portfolios that are directly linked to an index and therefore have managed passively. ETFs are almost always cheaper than traditional mutual funds, transparent and very flexibly tradable. Nevertheless, they also offer a central advantage of this form of investment: from a legal point of view, they represent special funds, i.e. there is no issuer risk. With around 1,500 ETFs on offer, investors can invest in almost any country, region or industry. Many strategies are also available.

ETCs and ETNs are exchange-traded debt securities without maturity restrictions and belong to the group of Exchange Traded Products (ETPs). Designated Sponsors provide continuous quotes in trading via the exchange and thus guarantee a high level of liquidity.

ETC stands for Exchange Traded Commodity, a term that has established itself in the market for securities that reflect the price development of commodities such as precious metals (gold, platinum, etc.), energy (oil, natural gas, etc.), agricultural products (wheat, live cattle, etc.). Another important feature is collateralisation: Currently, almost all ETCs traded on the Frankfurt Stock Exchange are covered by physical deposits of commodities or fiduciary deposits of collateral.

ETN stands for Exchange Traded Note. They are legally and commercially the same as ETCs and currently mainly reflect volatilities or currency pairs. ETNs can be secured or unsecured.

In contrast to ETFs, the funds invested in ETCs and ETNs do not form part of the issuers' special assets, but are bonds. Especially in the case of unsecured products, an investment is associated with the risk that the issuer may default as debtor. The construction of ETCs and ETNs enables the issuer to participate in more exotic securities and other market indicators such as volatility indices and currencies. For example, it has not been possible to participate in the volatility of the equity market via ETFs up to now.

The fourth term, ETP - Exchange Traded Product, covers ETCs and ETNs.

Xetra is the largest trading platform for ETFs and ETPs in Europe, also for private investors. This makes buying and selling particularly fast and inexpensive.