An index-linked product that constitutes an interest in a basket of securities. It is designed to allow investors to trade an interest in an equity market index without having to trade the individual underlying stocks. The market price of this product at any time is based on the value of an underlying equity index. In this sense, it helps replicate or track the performance of the underlying equity index. During its life, the issuer makes payment to the holder in an amount replicating the dividends paid on the underlying stocks in the respective index during that period of time.

The main two types of this product are: cash-settled index participation units and physical-settled index participation units.