##  [# Exchange Traded Note (ETN) Definition](/sections/exchange-traded-note-etn-definition) 

 

# Exchange Traded Note (ETN) Definition

 

 

Learn the definition of exchange traded note (etn) and other ETF terminology from the etf.com glossary.



 

 

 

 

 [![ETF](/sites/default/files/styles/author_image_icon/public/2023-12/ETFGlossary_400x400_0.png?itok=HW0ov3q8)](/authors/etf-glossary) 

[By ETF Glossary](/authors/etf-glossary)

 Dec 04, 2023

 Edited by: ETF.com Staff

 

 

 [ + Follow ](/etf/login) 

     Share  <a class="a2a a2a_button_email"> Email </a><a class="a2a a2a_button_linkedin"> LinkedIn </a><a class="a2a a2a_button_facebook"> Facebook </a><a class="a2a a2a_button_x"> X (Twitter) </a> 

 

 

 

 

 

 

 

 

  
            googletag.cmd.push(function() {
                googletag.display('js-dfp-tag-article_page_302x26');
            });
    
    

 

 

  

 



 

 

  Loading 

 

 



 

 

## Learn more about Exchange Traded Notes (ETN)

An exchange-traded note, or ETN, is a debt security that tracks the performance of an underlying asset, such as a stock, index, or commodity. ETNs trade on exchanges like stocks, but they are not backed by the underlying assets of the issuer. Instead, they represent a promise by the issuer to pay investors the performance of the underlying asset, minus any fees. ETNs are similar to exchange-traded funds, or ETFs, in that they both track underlying assets and trade on exchanges. However, there are some key differences between ETNs and ETFs. First, ETFs are backed by the underlying assets of the issuer, while ETNs are not. Second, ETFs are typically structured as open-ended funds, while ETNs are typically structured as closed-end funds. Finally, ETFs are generally more transparent than ETNs. ETNs can be a useful tool for investors who want to gain exposure to a particular asset without having to buy the underlying asset itself.

### Related Terms

[ETF Issuer](/etf-education-center/etf-glossary/etf-issuer), [Exchange Traded Fund (ETF)](/etf-education-center/etf-glossary/exchange-traded-fund-etf), [Open-End Fund](/etf-education-center/etf-glossary/open-end-funds), [Closed-End Fund ](/etf-education-center/etf-glossary/closed-end-fund)

 
            googletag.cmd.push(function() {
                googletag.display('js-dfp-tag-in_article_unit');
            });
    
    

 

 



 

 

 [ + Follow ](/etf/login) 

 [ ETF Glossary ](/authors/etf-glossary) 

 

 

  ETF Glossary is etf.com’s collection of key terms and definitions related to exchange-traded funds. ETFs are investment funds that are traded on stock…   [View Bio](/authors/etf-glossary)

 



 

 


 Related Topics