Which of the following statements about exchange-traded notes (ETNs) is true?
A) ETNs are more similar to mutual funds than to exchange-traded funds (ETFs).
B) ETNs are backed only by the issuer of the creditor.
C) ETNs have no maturity dates.
D) ETNs cannot be sold short.
E) ETNs can be bought or sold only at the end of the day.

Question

Quizplus · Accepted Answer

ETNs are unsecured debt securities issued by an underwriting bank, meaning they are backed only by the creditworthiness of the issuer, not by any underlying assets or commodities. This differentiates them from ETFs, which are typically backed by the assets they hold.

Which of the Following Statements About Exchange-Traded Notes (ETNs) Is