Special Notice about Leveraged and Inverse exchange traded commodities

There are leveraged and inverse (or short) ETC products available from some providers within the full range of ETCs available to UK retail investors and potential investors should be aware of the nature of these products when compared to standard ETCs. As with most ETCs both leveraged and inverse products are designed to track an underlying commodity benchmark, usually an index or a physical commodity, however:

Exchange traded commodities that offer leverage or that are designed to perform inversely to their underlying index or benchmark are highly complex financial instruments that carry significant risks.
These securities may not be appropriate or suitable for many investors, especially for those who plan to hold them longer than one trading session. Leveraged and inverse ETCs have unique compounding, daily reset and leverage features that may significantly amplify risk, particularly for medium and long-term investors, and particularly in periods of high market volatility.
Before investing in any leveraged or inverse ETC, carefully read the prospectus to ensure that your financial status, investment objectives, tax status, and risk tolerance are appropriate for the unique risks associated with these investments.

If you are in any doubt as to the suitability of a leveraged or inverse ETC investment please seek independent financial advice.