Exchange-traded products (ETPs) are similar to mutual funds in that they’re made up of a basket of securities. For ETPs, those securities include stocks, bonds, commodities, or indices. The main difference between exchange-traded products and mutual funds is that ETPs are traded like individual stocks on an exchange.
They are priced and can be purchased and sold throughout the trading day, and you can buy or sell ETP shares on a stock exchange much like the purchase or sale of any other listed stock. Traditional exchange-traded products are generally not actively managed and, typically generate fewer capital gains.