Friday, May 9, 2008

Structured investments - ETF vs. ETN.

ETF and ETN are becoming more and more popular products for many investors. Sometimes it is used for investing before "real" stock trading. Both offer many advantages compare to mutual funds. Exchange traded funds or notes you can traded directly on exchange. It means you can buy or sell anytime for market price.

ETF are still dominant with assets value $602 bln. ETN now accounts $6 bln but increasing rapidly during last year. We could see almost 200% growth in assets value from $2,1 bln to current $6 bln. ETF market grew by 26%.

ETN market is not only Barclays' as it was still one year ago. Swedish Export Credit, Deutsche Bank, Bear Stearns, Morgan Stanley and others now take around 20% of its value.

Category allocation for ETF and ETN

Related tickers: (BCS), (EEH), (DB), (BSC), (MS), (UBS), (LEH), (CS),
Data source: National Stock Exchange

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