what is etp

ETP stands for Exchange-Traded Product. It is a type of security that trades during the day on a national stock exchange. ETPs can track underlying securities, an index, or other financial instruments, and are often benchmarked to indices, stocks, commodities, or may be actively managed. ETPs can be a low-cost alternative to mutual funds and actively-managed funds. There are several types of ETPs, including Exchange-Traded Funds (ETFs), Exchange-Traded Notes (ETNs), Exchange-Traded Commodities (ETCs), and Exchange-Traded Instruments (ETIs) . ETFs are the most common and well-known type of ETP. ETPs can offer investors access to many securities and indices, but they also expose investors to a range of risks, so understanding the products and how they work is important.