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(However, if indices are constituted exclusively of stocks traded on overseas stock markets, the minimum number is 3.) 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.

Marketability

Being listed and traded on the exchange markets, ETNs enjoy ample liquidity, which enables investors to respond promptly to the changing market situation.