[Answer] When comparing an ETN to an ETF which statements are TRUE?

Answer: -ETNs have both credit risk and market risk-ETFs have only market risk
When comparing an ETN to an ETF which statements are TRUE?

This is the major design difference between ETFs and ETNs: ETFs are only subject to market risk whereas ETNs are subject to both market risk and the risk of default by the issuing bank. Even though the possibility of default turning into a reality is relatively low it ought to be measured and accounted for. [14]

Exchange-traded fund – Wikipedia

Exchange-traded fund – Wikipedia

Exchange-traded fund – Wikipedia

United States Oil Fund – Wikipedia

An exchange- traded fund ( ETF ) is a type of investment fund and exchange- traded product i.e. they are traded on stock exchanges. ETFs are similar in many ways to mutual funds except that ETFs are bought and sold throughout the day on stock exchanges while mutual funds are bought and sold based on their price at day’s end. An ETF holds assets such as stocks bonds currencies and/or …

Thu Jun 20 2002 14:30:00 GMT-0400 (Eastern Daylight Time) ยท Contango is a situation where the futures price (or forward price) of a commodity is higher than the expected spot price of the contract at maturity. In a contango situation arbitrageurs or speculators are “willing to pay more [now] for a commodity [to be received] at some point in the future than the actual expected price of the commodity [at that future point].

The first sentence is not exactly correct “Exchange- traded funds (or ETFs ) are open ended mutual funds that can be traded at any time throughout the course of the day.” ETF’s can’t be traded “any time” they can only be traded during market hours but the reason it is worth addressing is because the ETF’s have different market hours than other stocks.

The United States Oil Fund (NYSE Arca: USO) is an exchange-traded fund ( ETF ) that attempts to track the price of West Texas Intermediate Light Sweet Crude Oil. It is distinguished from an exchange- traded note ( ETN ) since it represents an ownership claim on underlying securities that the fund has packaged. U…

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