An Exchange-Traded Note (ETN) is a financial instrument that works similarly to an ETF, but instead of investing in a physical asset, it tracks the performance of a specific index or underlying asset. ETNs are issued by financial institutions, such as banks, and are in the form of debt, meaning that the investor does not own the actual asset, but only the right to receive a return based on the performance of the index being tracked.

To buy an ETN, you need to open a brokerage account and choose a listed instrument that aligns with your investment goals and risk tolerance. It’s worth analysing its structure, issuer, and the indicator it replicates. Before investing, beginners should gain knowledge about ETNs, their advantages, and risks in order to make informed decisions.

Yes, investors can buy ETNs themselves through a brokerage house or directly from the issuer. They can also sell them on the stock exchange before the end of the maturity period if they do not want to wait for the return of capital. Before investing, it is worth familiarising yourself with the transaction costs and the specifics of this instrument.

ETNs and ETCs are debt instruments of the issuer, while ETFs are funds that hold real assets. An ETN is a debt security issued by a financial institution that tracks the performance of a specific index or asset, but does not physically own it - the investor receives a return based on the performance of the index, not the asset itself. An ETC works similarly to an ETN, but is focused solely on commodities, often backed by a physical asset, although it is still a debt instrument. An ETF, on the other hand, is an investment fund that actually owns assets, such as stocks, bonds or commodities, and tracks their performance.