Exchange traded products
Exchange traded products (ETPs) are open-ended registered managed investment schemes (registered scheme). Units in the scheme are traded on licensed Australian exchange.
There are three broad categories of ETPs:
- exchange traded funds (ETF)s – unit trusts that are registered schemes that track an index or a market segment
- managed funds – ETPs that include higher risk (e.g. hedge funds and schemes that employ leverage and/or active investment strategies)
- structured products – a security or derivative that gives financial exposure to the performance of underlying instruments (e.g. exchange traded commodities and exchange traded notes)
Note: Separate to ETPs, listed investment trusts are closed-ended managed investment schemes where units are traded
There has been steady growth in both funds under management and the number of ETPs available on the market in Australia. ETPs, especially ETFs, are increasingly popular with retail investors and self-managed superannuation funds (SMSFs).
Licensed securities exchanges, as gatekeepers for the financial market, play an important role in the ETP market. We have provided guidance to licensed exchanges in Information Sheet 230 Exchange traded products: Admission guidelines (INFO 230).
To facilitate the operations of certain ETPs, we have issued:
- Class Order [CO 13/721] Relief to facilitate quotation of exchange traded funds on the AQUA Market, regarding equal treatment provisions in respect to providing information to authorised participants
- Class Order [CO 13/1200] Periodic statements relief for AQUA quoted and listed managed investment scheme manager, regarding the provision of periodic statements to retail investors.