Exchange traded notes were first created to mimic ________ index.

Question

Quizplus · Accepted Answer

Exchange traded notes (ETNs) were first created to mimic a commodity index, specifically, the Dow Jones-AIG Commodity Index. ETNs allow investors to gain exposure to a specific commodity, such as oil or gold, without having to physically own the asset. ETNs are similar to exchange traded funds (ETFs), but whereas ETFs are a type of investment fund that holds a basket of assets (such as stocks or bonds), ETNs are unsecured debt securities issued by a financial institution.

Exchange Traded Notes Were First Created to Mimic ________ Index