Types of ETNs

There are many types of ETNs linked to indexes and/or single reference assets based on a variety of products.  The four primary types of ETNs are: 

  • Commodity ETNs. Commodity ETNs seek to emulate the price performance of a particular commodity or commodity index.  The most popular commodity ETNs track energy, gold, metals, and energy.  Typically, commodity ETNs consist of derivative assets such as forward contracts, futures, and options.
  • Currency ETNs. Like currency ETFs, these types of ETNs seek to track the price of a particular foreign currency, like the Euro or Yen.  Currency ETNs are a good way to hedge inflation risk or gain exposure into foreign markets. 
  • Emerging Market ETNs. A third type of ETN is emerging market ETNs.  These spotlight particular up and coming countries or regions. 
  • Strategy ETNs. Strategy ETNs are associated with the performance of the index, for example Index Long and Index Short.