RT Journal Article
SR Electronic
T1 Are ETNs Realizing Their Potential? <em>An Empirical</em>
               <br/>
               <em>Investigation of ETNs versus Other Exchange-Traded Products</em>
               <br/>
               <em>in the Precious Metals’ Space</em>
JF The Journal of Index Investing
FD Institutional Investor Journals
SP 23
OP 33
DO 10.3905/jii.2012.3.2.023
VO 3
IS 2
A1 Hélyette Geman
A1 Lovjit Thukral
A1 Colby Wright
YR 2012
UL https://pm-research.com/content/3/2/23.abstract
AB Within the precious metals’ space, this article outlines and investigates empirically three potential advantages that ETNs may have relative to other exchange-traded products, such as ETFs. First, ETNs may be able to offer investors access to a wider array of assets, commodities, currencies, and indices with a greater variety of leverage ratios. The authors find that ETNs do, in fact, offer investors a much greater variety of leverage ratios in the precious metals’ space compared to other exchange-traded products. Second, ETNs may be able to offer investors lower annual expenses than comparable ETFs or other similar exchange-traded products. The authors are unable to statistically corroborate that notion, however, they note that some exchange-traded products charge nontrivial fees (upward of 3.74%) to investors who are not included in the annual expense fee, whereas ETNs assess no such implicit fees. Third, ETNs may enjoy greater price efficiency owing to the absence of tracking error. The authors find no empirical evidence supporting that possibility.TOPICS: Commodities, exchange-traded funds and applications, technical analysis