ETP (Exchange Traded Products) is the collective name for a group of investment and trading products listed by a bank on Nasdaq Nordic for trading.
Within the ETP category at Nasdaq Nordic, you may choose from a broad range of products with different levels of risk exposure and an underlying asset to best suit your investment needs.
ETFs - Exchange Traded Funds
Exchange Traded Funds (ETF) are very popular and combine the benefit of a fund with the flexibility of a stock.The ETFs listed on Nasdaq Nordic track the performance of a wide variety of underlying asset classes. There are also ETFs that provide magnified exposure to these assets through leveraged funds, which create the potential for several times greater daily return.
The ETFs listed on Nasdaq Nordic track the performance of a wide variety of underlying asset classes. There are also ETFs that provide magnified exposure to these assets through leveraged funds, which create the potential for several times greater daily return. The ETFs listed on Nasdaq Stockholm track the performance of indexes such as the OMXS-30 and OMX Stockholm Benchmark Index. There are also ETFs that provide magnified exposure to these indexes through leveraged funds, which create the potential for a 1.5 – 2 times greater daily return.
Warrants & Mini Futures
Warrants can be an attractive way to trade with a limited amount of invested capital.
You invest in the change of value for a share, an index or other assets without buying the actual underlying asset. This is possible due to the leverage inherent in warrants, where percentage movements in the price of the underlying are amplified. Exchange traded warrants are as easy to trade as shares. Warrants have been traded on Nasdaq Nordic since 1995 and market making in warrants ensure that their liquidity is very high.
A tracker certificate is a certificate issued by a bank or financial institution. A tracker certificate reflects the change in value of the underlying asset’s price movement 1:1.
The underlying asset can be, for example, a share, a bond, a commodity, a currency or a combination of different underlying assets. A tracker certificate usually has a long maturity and symmetrical return that follows the underlying price movement 1: 1. Tracker certificates give the possibility of returns in rising market (referred to as Bull) and falling market (referred to as Bear).
A leverage certificate is a certificate issued by a bank or financial institution. The leverage certificate reflects the change in the value of the underlying assets with leverage.
The underlying asset can be, for example, a share, a bond, a commodity, a currency or a combination of different underlying assets. Leverage certificates usually have a long maturity with constant leverage that is rebalanced on a daily basis. Leverage certificates give the possibility of returns in rising markets (referred to as Bull) and falling market (referred to as Bear).
A certificate is a subordinated non-interest bearing debt instrument. The return on an investment in a certificate reflects the return of a specific underlying asset or basket of underlyings.
Nasdaq Nordic together with the issuers, provides a wide range of different types of certificates. Current supply includes bonus certificates, booster certificates and discount certificates.
A Spread Certificate is issued by a bank. It is a combination of a short and a long position in two different underlying assets such as a stock and a commodity.
The spread certificates will increase in value when the value of each underlying position develops as expected and the spread between the stock price and the commodity price in above example increases. The maturity of the spread certificates varies between 6 months and 12 months and the return is symmetric.
Alternative Investment Funds
Nasdaq’s market for Alternative Investment Funds (AIFs) offers investors the opportunity to trade AIFs on a regulated market.
The term AIF includes all investment funds that are not already covered by the European Directive on UCITS, e.g. hedge funds, funds of hedge funds, venture capital and private equity funds and real estate funds. Products on the Nordic AIF market are currently available on Nasdaq Stockholm and Nasdaq Copenhagen. Danish Capital Associations are also examples of AIFs and are subject to special regulation by the Danish regulators. Capital Associations can list on Nasdaq Copenhagen.
- The market for Alternative Investment Funds is open for trading 9.45-17.00 CET at Nasdaq Copenhagen and 09:30-17:25 at Nasdaq Stockholm.
- The NAV values are displayed on the issuers websites, distributed by the issuer as company announcements/press releases and in specific cases also published on the Nasdaq microsite of the fund.
- Please contact us for a discussion on local market features and listing requirements.
Nasdaq Nordic offers trading in Actively-Managed Funds as a complement to Exchange Traded Funds (ETFs) on Nasdaq Helsinki and Nasdaq Stockholm.
One of the key differentiators of these funds is that an Actively-Managed ETF generally tries to create greater return through active management, compared to passively-managed ETFs which try to track a predefined index. Actively-Managed Funds on Nasdaq Nordic are traded in the same way as shares and ETFs. Actively-Managed Funds segment is set up for both exchange traded share classes of existing "traditional" funds as well as funds only offered for trading on the exchange. Trading is offered in real-time and the price of the fund is evaluated and provided by a dedicated market maker throughout the trading day.
- Continuous trading hours for Actively-Managed Funds are between 9.30-17.25 CET (i.e. trading starts 30 minutes after trading in ETFs)
- Fund company provides indicative Net Asset Value (iNAV) a minimum of three times per day to the relevant Nasdaq exchange and to the market maker. Any significant changes in the iNAV are also published
- The iNAV values are displayed on the Nasdaq Nordic website and disseminated through the Market Data feed
- The Market Maker uses the iNAV as a basis in providing bid and offer prices for the funds throughout the trading day
- ETF stands for Exchange Traded Funds. An ETF tracks the performance of underlying asset classes, such as an index, a basket of stocks, bonds or commodities. They can be bought and sold on an exchange and represent a collection of securities, so they give investors the possibility to track the performance of a wide range of securities.
- Flexibility and transparency are two features that have added to the popularity of investing in ETFs. An ETF can be bought and sold on the marketplace during the whole trading day and an investor can access the price at any given moment.
- As an ETF tracks the performance of underlying asset classes, buying an ETF gives investors a simple and cost-effective tool to be exposed to the underlying securities. Instead of buying stocks in all companies included in an index, investors can be exposed to those stocks with a lower risk. Investors can invest in many industries, companies or markets with the purchase of just one instrument.
- Exchange Traded Funds suit active investors who have a firm understanding about trading in financial instruments and who want to benefit from changes in the market as easily and quickly as when buying or selling stocks.
- Investing in ETFs is done by placing your order with your broker — similar to the way stocks are bought and sold.
- ETFs have become a very popular investment tool due to its flexible and cost-efficient nature. The first ETF was introduced in the U.S. in 1993, known as “Spider”. In Europe it is one of the fastest growing instruments in recent years and has grown its turnover more than ten times since it was introduced in 2002. In 2008, the annual turnover of trading in ETFs in Europe reached over 400 billion EURO. Nasdaq has been actively involved with ETFs as it launched the European NASDAQ-100 Tracking Stock in 2002 on five different European exchanges.