ETN, like a debt instrument, will pay interest regularly according to the performance of the tracked index. For example, ETN will try its best to eliminate tracking errors. Due to liquidity factors, some specific indexes are difficult to track (such as futures indexes), and ETFs have ways to avoid such risks.

Unlike ETFs, ETN has no specific requirements for trust assets. Just like a debt instrument issued by a bank, it can be redeemed daily and weekly, and its value is the promised return MINUS the cost.

The risk faced by ETN holders is to support the collapse of banks. If we support the bankruptcy of the bank, the holders of ETN must queue up to claim the rights to the company's property like other creditors of the bank.

In the fierce struggle of financial institutions, the issue risk is a problem worthy of attention. All three ETNs issued by Lehman Brothers have been closed. The 22 ETNs supported by Deutsche Bank lost 80%.

Unlike ETN, ETF is a legally established fund in the form of trust, which is independent of the banking group. Before the bankruptcy procedure, the assets of ETF will not be used passively, so it can be said that it is a fund wholly owned by shareholders.