The type of arrow being fired can be changed by pressing on the PS4, on the Xbox One, or R on the PC version. The type of arrows able to be fired are normal/metal arrows, explosive arrows, tranq arrows, and flame arrows. Double tapping the button to swap arrow types also changes how the arrow flies. There is projectile mode, which fires like a normal projectile arrow, and then there's instant hit mode, where the arrow will instantly hit what the player is aiming at.
While in instant fire mode, it cannot damage structures, but while in projectile mode it can damage structures. However, turrets can target the projectile but not the instant fire.