Difference between ETF and ETN.
Source: http://stockweb.blogspot.com/2008/05/difference-between-etf-and-etn.htmlPosted on Friday, May 9th, 2008 | In Current Market News, Europe, Exchange Traded Funds, Stocks to Watch
Contributed by: Vlada Kynsky (http://stockweb.blogspot.com/) -
Exchange traded funds (ETF) and Exchange traded notes (ETN) are derivatives underlying investment assets (stocks, indexes, commodities etc.). Issuer are big investment banks.
ETF represents in fact ownership for underlying assets. Therefore especially big institutional holders could and also do asking to redeem their ETF position for underlying stocks. This makes ETF price staying closely along underlying stocks. For example this is not the case for Closed end funds – CEF.
Contrary ETN is kind of structured product issued as a debt note. And that’s why credit risk is here. Of course nobody really expect Barclays’ goes bankrupt. ETN are lack of tracking risk. It means that price exactly reflects underlying index. ETF can differ from NAV.
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Atom, Barclays, Cef, Closed End Funds, Commodities, Credit Risk, Current Market News, Derivatives, ETF, Etn, Europe, Exchange Traded Funds, Exchange Traded Funds, Exchange Traded Notes, indexes, Institutional Holders, Investment Assets, Investment Banks, stocks, Stocks to Watch, Structured Product
Atom, Barclays, Cef, Closed End Funds, Commodities, Credit Risk, Current Market News, Derivatives, ETF, Etn, Europe, Exchange Traded Funds, Exchange Traded Funds, Exchange Traded Notes, indexes, Institutional Holders, Investment Assets, Investment Banks, stocks, Stocks to Watch, Structured Product
 About Vlada Kynsky (http://stockweb.blogspot.com/)
Vlada Kynsky studied economics and gained work experience as SAP analyst in information technology. His origin is in Czech Republic but due to different work assignments lived in many European countries. He explores mainly emerging markets. In his research he focuses on ETF and international stocks. Another area of interest are technology stocks. |
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