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ETF Investment Strategies: Best Practices from Leading Experts on Constructing a Winning ETF Portfolio by Aniket Ullal

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CHAPTER 7DIFFERENCES BETWEEN AN ETF AND ETN

As their names suggest, exchange-traded funds and exchange-traded notes are both investment products that trade on exchanges. They often get grouped together because an ETN tracks an underlying index benchmark, just like an ETF does (with the exception of active ETFs).

Since ETNs provide targeted and tradable access to specific index benchmarks, investors often view them as being in the broad ETF toolkit. In many cases, they can be an alternative to more traditional ETFs, but they are different from ETFs in several key aspects. Investors should be aware of these differences when selecting between these two categories of ETPs.

Below we describe the five key differences between ETFs and ETNs that investors ...

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