Exchange traded products (ETPs) are ones whose value goes up and down according to the value of an index (a group of companies used to measure the growth of a market) or another measure, like the price of oil or gold.
Some ETPs are well known and straightforward but some are much more complex and they don’t all offer you the same level of protection against things going wrong.
ETPs that are in the form of investment funds are called exchange traded funds (ETFs) and are regulated.
Many physically hold the shares or other investments that they aim to track and so are fairly straightforward and similar to other types of investment fund that you might consider.
However, some ETFs are complex and more risky, for example, tracking an index in artificial ways (called a synthetic investment strategy) or tracking an unusual asset, that might be hard to define and measure.
There are other types of ETP that are not set up as funds.
They might be bonds or have other more complicated structures. They are not regulated by the FCA, so you might have little or no protection.
They include exchange traded commodities (ETCs) and exchange traded notes (ETNs), and are not suitable for most people.