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..

Comparison with ETFs
  ETNs ETFs
Legal classification Equity linked securities Collective investment securities
Issuer Securities company Asset management company
Credit risk of issuer Yes No
Maturity 1~20 years No
Management of underlying assets At issuer’s discretion Tracking underlying index