Exchange traded products (ETPs)
Some are riskier than others
Exchange traded products (ETPs) are investments that can be
bought and sold on an open market, such as the ASX. There are lots
of exchange traded products available to retail investors, with
varying degrees of risk and complexity.
Here we explain the differences between different types of
Types of ETPs
Here are the different types of exchange traded products:
- Exchange traded funds
(ETFs) - A type of managed fund that can be a low-cost
way to get investment returns similar to a share index or another
ETFs - A type of managed investment that can be bought or
sold like shares. It uses complex products like derivatives to
achieve investment objectives such as replicating returns on an
- Other exchange traded
products - Other exchange traded products, such as
structured products, exchange traded managed funds and exchange
traded hedge funds, are traded on the ASX Quoted Assets (AQUA)
market because different listing rules apply.
Before investing in these products, read the product disclosure statement (PDS) for
further information about the specific features of each product,
and consider getting professional financial advice.
You can also complete one of the ASX's free online courses on ETFs and
Why ETPs are listed on two
In Australia, exchange traded products are quoted on the ASX
listing market or the AQUA market.
Products that are traded on the AQUA market are issued by a
third party, giving investors exposure to the underlying assets,
without owning those assets. The issuer does not have control over
the assets it is tracking, but the value of the fund is linked to
the performance of the underlying assets.
The AQUA market offers trading at net asset value
(NAV) in products such as:
- ETFs (including synthetic ETFs)
- structured products
- exchange traded managed funds (including exchange traded hedge
Products quoted on the AQUA market must contain labels such as
'synthetic' or 'collateralised' in their title, where
Similar products listed on the ASX listing market may not comply
with the same AQUA market listing requirements.
There are many different types of exchange
traded products, varying in risk and complexity. Get financial
advice if you are not sure if this type of investment is right for
Last updated: 15 Oct 2018