An exchange-traded product (ETP) is a regularly priced security which trades during the day on a national stock exchange. ETPs may embed derivatives but it is not a requirement that they do so and the investment memordanum (or offering documents) should be read with care to ensure that the pricing methodology and use (or not) of derivatives is explicitly stated. Typically, individual underlying securities, such as stocks and bonds, are not considered ETPs.
ETPs are often benchmarked to indices, stocks, 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 funds which are only available for buying and selling at certain points in the day.