ETN Education

What are Exchange Traded Notes?

Exchange Traded Notes (ETNs) are senior, unsecured debt securities that are designed to match the returns of a specific market index, minus fees. ETN holders do not receive any coupon payments during the life of the note, and there is no principal protection for the investment.

In addition to fluctuations in price of the underlying index, the value of an ETN is affected by the credit rating of the issuer.

ETNs are listed for trade on stock exchanges (currently the AMEX and NYSE) during normal market hours, and can be shorted as well as purchased as a long position.

Syndicate content