Exchange-traded vehicles (ETVs) provide investors exposure to underlying assets such as futures contracts, commodities, and currencies without actually trading futures or ever taking physical delivery of the underlying assets.
ETVs enable investors to gain exposure to a commodity without trading futures or taking physical delivery.
An ETV is an investment instrument that tracks the performance of an underlying asset or an asset index. ETVs are typically structured to provide investors with exposure to commodities without trading futures or taking physical delivery. Until now, the two traditional methods for investing in commodities have been investing in the futures market or physically purchasing the actual commodity.
Instead of acquiring a connection to a derivatives exchange, members can now trade commodities through ETVs on NYSE Arca. Their structure and transparency make these products easily tradable.
Buy-side investors and their sell-side partners can trade ETVs during market hours like any equity. ETVs can be bought and held in ordinary brokerage or custodial accounts.
LMMs and LPs provide liquidity to these products and are contractually obliged to be continuously present at market with a minimum size and maximum spread during normal trading hours.
ETVs at NYSE Arca
In the U.S., NYSE Arca lists over 75 primary ETV listings.