What is the difference between an ETF and an ETN?

ETFs and ETNs can look similar because both trade on exchanges, but they're different products. An ETF is a fund that holds (or references) a portfolio of assets. An ETN (exchange-traded note) is a type of unsecured debt issued by a bank or financial institution.

With an ETN, you're taking on issuer credit risk: if the issuer runs into trouble, your ETN could be impacted even if the underlying index performs well. ETFs generally don't have that same issuer-credit exposure because shareholders have a claim on the fund's assets.

If you're comparing the two, read the product description carefully. ETNs can sometimes offer exposure that's hard to get in ETF form, but you're trading that for credit risk and different tax/structure considerations.