ETFs stands for exchange-traded funds. These are index funds traded on the stock exchange—portfolios that are directly linked to an index and therefore only have passive fund management. ETFs are almost always cheaper than traditional mutual funds, transparent, and very flexible to trade. Nevertheless, they also offer the key advantage of the fund vehicle: from a legal perspective, they are special assets, meaning there is no issuer risk. With around 2,500 ETFs on offer, investors can engage in almost any country, region, or industry. There are also numerous strategy and theme ETFs with more sophisticated compositions, as well as ETFs whose investments are selected according to sustainability criteria. ETFs that are doubly hedged and move in the opposite direction to the index are also available.

ETC stands for Exchange Traded Commodity, a term that has become established in the market for securities that track the price development of commodities such as precious metals (gold, platinum, etc.), industrial metals or energy (oil, natural gas, etc.), and agricultural products (wheat, live cattle, etc.). Another important feature is collateralization: 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 represent cryptocurrencies such as Bitcoin, Ether, Solana and Co, volatilities or currency pairs. ETNs can be either collateralized or uncollateralized. Unlike ETFs, ETNs can also be equipped with larger levers, both with positive and inverse representation of the underlying asset.

ETCs and ETNs are exchange-traded debt securities with no maturity restrictions and belong to the group of exchange-traded products (ETPs).

Unlike ETFs, the funds invested in ETCs and ETNs are not part of the issuer's special assets, but are debt securities. Unsecured products in particular involve the risk that the issuer may default as a debtor. On the other hand, the structure of ETCs and ETNs allows investors to participate in more exotic securities and other market indicators such as volatility indices and foreign exchange (currencies). Until now, it has not been possible to invest in stock market volatility via ETFs, for example.

The fourth term, ETP (exchange-traded product), covers both ETCs and ETNs.

Deutsche Börse Xetra is the largest trading venue for ETFs and ETPs in Europe, including for private investors. This makes buying and selling particularly fast and inexpensive. Designated sponsors continuously provide quotes on Xetra, thereby guaranteeing high liquidity.

A special service for private investors who have their securities account with one of the participating banks offers execution at better prices and thus higher returns. In addition, savings plans on Xetra are free of charge on the part of Deutsche Börse.

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