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1.
Investing in an exchange-traded note entails _______.
Both of the above. An ETN is an unsecured obligation, meaning that if the financial institution issuing it can't meet its obligations, assets invested in the ETN may be lost. For that reason investing in an ETN entails a degree of credit risk along with the risk inherent in the performance of the index it tracks.
2.
Which alternative investment below is a promissory note from a financial institution to match the return of an index, minus fees?
An exchange-traded note. Like a bond, an ETN has a maturity date, and like an ETF it can be traded throughout the day.
3.
What is the difference between an exchange-traded fund and a mutual fund?
