Exchange-Traded Products (ETP)
Exchange-Traded Products (ETPs) are a broad category of investment products that are traded on stock exchanges and include Exchange-Traded Funds (ETFs), Exchange-Traded Notes (ETNs), and other exchange-traded investment vehicles. ETPs are designed to track the performance of various assets, including stocks, bonds, commodities, currencies, or specific indices. They offer investors the benefits of liquidity, transparency, and the ability to gain diversified exposure to different markets. ETPs can be passively managed, like index-tracking ETFs, or actively managed, offering a wide range of investment strategies and risk profiles.
Example
An investor might buy an ETP that tracks gold prices, gaining exposure to the commodity without physically owning gold.
Key points
• A category of investment products traded on stock exchanges, including ETFs, ETNs, and more.
• Tracks the performance of various assets and indices.
• Offers liquidity, transparency, and diversified exposure to investors.