- Easy access to diverse underlying assets
- Since, compared to ETFs, ETNs are subject to lower regulation on the management, more diversified products can be developed based on various underlying assets. Furthermore , investors can employ more diverse investment strategies because the underlying indices for ETNs can be created with less
number of constituent stocks than ETFs: the minimum number of constituent stocks for an ETN is 5 whereas that of ETFs is 10.
- Minimized tracking errors
- No tracking error occurs as the return on underlying index is guaranteed by the issuer.
- Investment easiness
- Since ETNs are index-linked products - market prices vary according to the movements of the underlying index,. investors can make investment decisions without analyzing individual stocks of the underlying index.
- Being listed and traded on the exchange markets, ETNs enjoy ample liquidity, which enables investors to respond promptly to the changing market situation.