| You have probably heard of exchange traded funds (ETFs), but you may be unfamiliar with exchange traded notes (ETNs). They are similar in that both track some form of asset, trade on the major stock exchanges and have relatively low expense ratios compared to an actively managed fund. The main difference, and most of the differences that follow, relate to the underlying assets.
ETFs actually hold the assets that they attempts to track, whether the assets are stocks, bonds, commodities, precious metals, or other financial entities. Returns are based on the assets that are held by the fund. Assets are managed to stay on track with the index...............................................Full Article: Source
|