'/%3E%3C/svg%3E){kind=small}
'/%3E%3Cpath%20fill='%23b2b2b2'%20d='M241%20382q0%2016%2017%2026%2017%2011%2042%2011t42-11q16-11%2017-26V269H241'/%3E%3Cpath%20fill='%239f7e00'%20d='M241%20379q0%2014%208%2023%209%209%2021%209%2014%200%2021-9%209-9%209-23V269h-59'/%3E%3Cpath%20d='M241%20339v-70h59v110q0%2014-9%2023l-6%205v-68h-15v72q-8%200-14-4v-68zm59%2040c0%2022%2015%2032%2029%2032%2021%200%2030-18%2030-32v-40h-59'/%3E%3Cpath%20fill='%239f7e00'%20d='M266%20277v5h2v12h-3v-5h2v-5h-9v5h2v5h-4v9h3v18h-5v10h34v-10h-5v-18h3v-9h-4v-5h2v-5h-9v5h2v5h-3v-12h2v-5zm42%20101q0%2010%206%2017%206%206%2015%207%2010-1%2016-7%206-7%206-17v-29h-43'/%3E%3Ccircle%20fill='%230044ad'%20cx='329.5'%20cy='372'%20r='6'/%3E%3Cellipse%20fill='%230044ad'%20cx='300'%20cy='340'%20rx='16'%20ry='21'/%3E%3C/svg%3E){kind=small}
How to choose an ETC, example 3
In this third and last example, I will show you, very quickly, how you can choose an ETC, in this case on gold. The characteristics I’m looking for are pretty much always the same. I want a liquid ETC, with physical replication, low costs, quoted in euro and that has been on the market for at least 5 years.
In the JustETF screener, I click on “precious metals”. This gives me the whole list of ETCs, from gold to silver and including palladium, platinum, etc.
I have several ETCs to choose from. So, I click on “Fund Size (in m €)” to sort them by size.
The first, Xetra-Gold, is the largest and most traded (so very liquid), is denominated in euro, has no management cost (only custody fees of 0.36% per year, which your bank or broker may pass on to you, and you still have to pay your bank’s or broker’s commissions), has physical replication and has been on the market since December 2007. As for the issuer, Xetra-Gold is issued by Deutsche Börse Commodities, each note gives the right to one gram of gold, and the gold is held by Clearstream Banking in Frankfurt.
All this, as in the previous examples, can be found by clicking on the name or by looking at the ETC’s characteristics directly on the issuer’s website.
At this point, choosing an ETF or ETC should seem less complicated to you, even if you have to spend some time on it.
You have seen the criteria, explained first in theory and then in practice through the examples. To help you in your choice, you can use the JustETF screener (https://www.justetf.com/en/find-etf.html) and, by selecting on the left the available parameters that interest you, reduce the number of results.
By clicking on each of the results, you can read its characteristics (or look at them directly on the issuer’s website). You can also download and read the fact sheet and the KIID (in PDF format).
If, like me, you have an account with a broker that allows you to buy ETFs, chances are it already comes with a screener. No one is stopping you from using that (or another free screener); however, I have found JustETF to be very well done for a European investor.
