Exchange-Traded Note
Definition
What is Exchange-Traded Note?
An unsecured debt instrument whose return tracks an index or strategy, subject to issuer credit riskThe possibility that a borrower or issuer will fail to make promised payments or suffer a downgrade..
Example in practice
How This Looks in Practice
An ETN tracks a commodity indexA rules-based measure tracking a basket of commodity prices or futures contracts. but remains a debt obligation of the issuing bank.
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Related Terms
Money Market Fund
A mutual fund that invests mainly in short-term, relatively liquid instruments such as treasury bills and deposits.
Fund TypesEquity Fund
A fund that invests primarily in shares and seeks long-term capital growth.
Fund TypesFixed Income Fund
A fund focused on income-producing debt securities such as government and corporate bonds.
Investment MethodsLump-Sum Investment
A single, relatively large investment made at one time instead of through repeated contributions.