ETF and ETN

An ETF is an exchange traded fund.
An ETF which consists of an actual security or sometimes commodity or currency derivative such as futures, forwards, and options.
When an investor purchases an ETF, he is purchasing an asset like a stock or index.


ETNs are structured investment products that are issued by a major bank or provider as senior debt notes.
When an investor purchases an ETN, he or she is purchasing a debt product similar to a bond. The terms of the debt contract are determined by the structure of the ETN.