Relative to ETFs, ETNs generally:
A) track the index more closely but entail less credit risk.
B) track the index less closely but entail more credit risk.
C) track the index more closely but entail more credit risk.
D) track the index less closely but entail less credit risk.

Question

Quizplus · Accepted Answer

ETNs (Exchange-Traded Notes) are unsecured debt securities that track an index more closely because they do not hold the underlying assets, but they entail more credit risk as they depend on the creditworthiness of the issuer.

Relative to ETFs, ETNs Generally