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What are Exchange Traded Notes (ETNs)?

Exchange Traded Notes (ETNs) are a type of Exchange Traded Product (ETP) often issued by an investment bank or investment management company. ETNs are often used to track assets or indices that other ETPs cannot. The investment manager promises to give the same return as an index, less charges. Some ETNs hold collateral - stocks, bonds or cash unrelated to the index but of equal value - whereas many do not. ETNs are complex investments.

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