Exchange-traded product
Encyclopedia
An exchange-traded product (ETP) is a derivatively-priced security
which trades intra-day on a national stock exchange
. ETPs are typically benchmarked to indices
, stock
s, commodities
, or may be actively managed. There are several different types of ETPs, including:
ETPs also qualify for advanced types of orders such as limit orders and stop orders. This is in contrast to traditional mutual fund
s which are only available for buying and selling at the close of business each day.
Security (finance)
A security is generally a fungible, negotiable financial instrument representing financial value. Securities are broadly categorized into:* debt securities ,* equity securities, e.g., common stocks; and,...
which trades intra-day on a national stock exchange
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
. ETPs are typically benchmarked to indices
Stock market index
A stock market index is a method of measuring a section of the stock market. Many indices are cited by news or financial services firms and are used as benchmarks, to measure the performance of portfolios such as mutual funds....
, stock
Stock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
s, commodities
Commodity
In economics, a commodity is the generic term for any marketable item produced to satisfy wants or needs. Economic commodities comprise goods and services....
, or may be actively managed. There are several different types of ETPs, including:
- Closed-end fundClosed-end fundA closed-end fund is a collective investment scheme with a limited number of shares. It is called a closed-end fund because new shares are rarely issued once the fund has launched, and because shares are not normally redeemable for cash or securities until the fund liquidates.Typically an...
s (CEFs) - Exchange-traded derivative contractExchange-traded derivative contractExchange-traded derivative contracts are standardized derivative contracts that are transacted on an organized futures exchange....
s - Exchange-traded fundExchange-traded fundAn exchange-traded fund is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as the S&P 500 or MSCI EAFE...
s (ETFs) - Exchange-traded notes (ETNs) which may include:
- Exchange-traded certificates (ETCs)
- Exchange-traded currencies (ETCs)
- Exchange-traded commodities (ETCs)
ETPs also qualify for advanced types of orders such as limit orders and stop orders. This is in contrast to traditional mutual fund
Mutual fund
A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities.- Overview :...
s which are only available for buying and selling at the close of business each day.
See also
- List of exchange-traded funds
- Gold exchange-traded product
- Silver exchange-traded product