exchange-traded note (ETN)

Senior, unsecured, unsubordinated debt securities issued by an underwriting bank that can be bought and sold throughout the day on a stock exchange at a market-determined price. Their assets are typically lumped together with exchange-traded fund (ETF) assets. Similar to other debt securities, ETNs have a maturity date and are backed only by the credit of the issuer. ETNs typically do not guarantee any return of principal at maturity and do not pay interest during their term. Instead, you receive a cash payment at maturity less fees based on the performance of the underlying index.