ETN
Business & Finance abbreviation · Stock Market & Investing
| Stands for | Exchange-traded note |
|---|---|
| Categories | Business & Finance |
ETN stands for Exchange-traded note, a stock market & investing abbreviation.
Unsecured debt security issued by a bank that pays a return linked to an index or strategy and trades on an exchange like a stock. Unlike an ETF, an ETN holds no underlying assets, so investors bear the credit risk of the issuer.
Example: When the bank stopped issuing new units of its oil ETN, the note began trading at a large premium to its indicative value.
Usage notes
Barclays launched the first ETNs in 2006 under the iPath brand. ETNs can deliver hard-to-replicate exposures, such as volatility or commodities, but the collapse of the XIV volatility note in February 2018 showed how quickly some can lose value. If the issuer defaults, holders may lose their investment.
Related abbreviations
More stock market & investing abbreviations
- ECN – Electronic communication network
- EDGAR – Electronic Data Gathering, Analysis, and Retrieval
- EM – Emerging markets
- EMA – Exponential moving average
- EMH – Efficient-market hypothesis
- ETF – Exchange-traded fund
- ETP – Exchange-traded product
- FAANG – Facebook, Apple, Amazon, Netflix and Google
- FINRA – Financial Industry Regulatory Authority
- FOK – Fill or kill
- FPO – Follow-on public offering
- FTSE – Financial Times Stock Exchange