The term "Exchange Traded Product" (ETP) refers to a broad category of investment products, including Exchange Traded Funds (ETFs), Exchange Traded Commodities (ETCs), and Exchange Traded Notes (ETNs).

ETPs are designed to deliver returns based on the fluctuations in the prices of an underlying asset or benchmark such as an index, commodity, or individual stock. However, each ETP type achieves this exposure through different structures and poses different risks.

Unlike conventional bonds, ETPs like ETCs and ETNs are structured as debt securities. These instruments don't pay any interest and are not rated. Investors can use ETPs to diversify their portfolios without the need to enter into swap agreements or forward contracts, take physical delivery of the underlying commodity, or hold securities that constitute the underlying index.

It's important to note that ETPs differ from ETFs in several ways. ETPs, including ETCs and ETNs, are not considered funds and are outside the scope of Undertakings for Collective Investments in Transferable Securities (UCITS).

However, while ETPs are not UCITS compliant, they may still be UCITS eligible. This means that even though they don't comply with UCITS rules, they can still be a suitable investment for another UCITS fund.

Investing in securities or other financial instruments always involves the potential of losing your money. FlexInvest recommends considering your investment objectives and risks before investing. For more information, please read our Risk Disclosures Statement and our Terms & Conditions.