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Exchange-Traded Notes

Definition

Exchange-Traded Notes are unsecured debt securities issued by financial institutions that track the performance of an underlying market index or asset. Unlike exchange-traded funds, ETNs do not directly hold assets; instead, they are promises from the issuer to pay the return of the index. They trade on major exchanges, offering investors exposure to specific markets, including digital assets, without direct ownership. ETNs carry credit risk associated with the issuing institution.