Both ETFs and ETNs track the underlying indices and have similar economic substantiality, but ETNs differ from ETFs in terms of issuer, credit risk, underlying indices, asset management and maturity, etc. A broad range of ETN products are developed, in the area, where it is difficult to issue ETFs or high costs are expected to incur, creatinge a synergy effect in asset management market..
|Legal classification||Equity linked securities||Collective investment securities|
|Issuer||Securities company||Asset management company|
|Credit risk of issuer||Yes||No|
|Management of underlying assets||At issuer’s discretion||Tracking underlying index|