An Exchange Traded Note (ETN) is an investment vehicle, designed to provide exposure to a specific asset class or index in a similar way to ETFs and ETCs and they are also traded like ordinary shares throughout the day.

However their structure is different to ETFs and ETCs. ETNs are unsecured debt securities and are not collateralised investments. Investors are therefore subject to credit risk of the issuer. They typically do not pay a dividend.

ETNs track the performance of a range of underlying investments including commodity indices giving exposure to the likes of crude oil, gold, corn and aluminum and other international indices which would otherwise be difficult to access. These indices in turn often track derivative products such as futures contracts and forwards, and therefore can be more volatile than a simple tracking index like the FTSE 100.

It is therefore important that you read the Prospectus and Factsheets produced by the issuers to understand exactly what you are investing in, how it is structured and the risk associated with it.

Equally, and as with any stock market related investment, you should remember that the value of your investments and any income from them can go down as well as up. You may not get back the full amount you have invested. Many ETNs are listed in multiple currencies and hence returns can be affected by adverse movements in exchange rates. However, you should note that some ETNs include a ‘Quanto’ feature designed to eliminate currency risk.

Our ETN platform enables you to trade ETNs issued by Barclays Bank (iPath) and Societe Generale Effekten. Buying and selling ETNs costs the same as trading other equities - you'll find dealing charges shown on our Price List.

Before buying an ETN, you should read the Prospectus and Factsheets (available on the issuers' websites) and be sure you understand how it is structured and its risks.