With the expansion of the ETP industry, there has been increased confusion about how each product differs. Trying to pick an ETF among the barrage of products no longer seems as straight-forward. Helen Fowler takes a look at why this confusion has emerged
The exchange-traded product (ETP) industry has suffered from what many consider an excess of acronyms throughout its short life. Within the same category are exchange-traded funds (ETFs), exchange-traded notes (ETNs), exchange-traded products (ETPs) and exchange-traded commodities (ETCs), all of which sound similar to each other. In fact, they all denote radically different structures and risks. Now the confusion has spread to the product where it all started – the ETF itself. “There is confusion about what counts as an ETF,” says Chris Sutton, senior consultant at UK investment advisor...
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