Document Type
Blog Post
Publication Date
7-30-2012
Contents
While ETFs are essentially market-traded products that are similar to mutual funds, ETNs are actually more like a variable rate fixed income product that is "guaranteed" by the issuer. This difference adds a significant element of counterparty risk. Further, most ETNs are treated like partnerships, which means that taxes on gains (and losses) are treated differently, with recognition required each year (Statement K-1) rather than simply at sale. See a brief article here, USA Today.
Recommended Citation
Dolvin, Steven D., "ETFs vs. ETNs" (2012). All Chapters. 30.
https://digitalcommons.butler.edu/jmdallchapters/30