Structure |
Unsecured debt obligations of the Issuer |
Funds representing an underlying portfolio of assets |
Liquidity |
Can be bought and sold daily on an exchange, provided a trading market exists |
Can be bought and sold daily on an exchange, provided a trading market exists |
Transparency |
Performance of an X-Links™ ETN depends on the return of its reference index, less applicable product fees. The Issuer (or its agent) publishes the value of its X-Links™ ETN
at the end of each trading day (the closing indicative value or CIV) and an estimate of its value every 15 seconds during the trading day (the intraday indicative value or IIV). Such
values are calculated according to specific formulas described in the relevant X-Links™ ETN prospectus |
Performance of an ETF depends on the return on a portfolio of securities or instruments held by the fund, less applicable product fees. An ETF publishes the value of its portfolio of
assets by publishing an end-of-day net asset value (NAV) and by disseminating an estimate of its value every 15 seconds during the trading day (the intraday indicative value or IIV).
Such values are based on the market value of the securities or instruments in the portfolio held by the fund |
Accessibility |
Accessed through a brokerage account, though certain brokerages may have restrictions on product availability |
Accessed through a brokerage account, though certain brokerages may have restrictions on product availability |
Creation and Redemption Mechanism |
Yes, but creation of new units may be suspended |
Yes, but creation of new units may be suspended |
Early Redemption by Investor |
Usually daily and directly to the Issuer, subject to minimum size requirements and potential product fees |
Usually daily via custodian, subject to minimum size requirements and potential product fees |
Risk to Principal |
Market risk and Issuer credit risk |
Market risk |
Tracking Error to Reference Index* |
None. This is because an X-Links™ ETN’s CIV reflects the end-of-day economic value of the X-Links™ ETN, which is directly related to the performance of its reference index,
less product fees |
Minimal to high. This is because an ETF’s NAV reflects the performance of a portfolio of assets that are intended to correspond generally to the performance of the ETF’s reference index
or benchmark, less product fees, rather than the reference index or benchmark |
Trading Price versus Economic Value(CIV/NAV) |
Trading price may not track CIV due to, among other things, imbalances of supply and demand, lack of liquidity, transaction costs, credit considerations and bid-offer spreads |
Trading price may not track NAV due to, among other things, imbalances of supply and demand, lack of liquidity, transaction costs and bid-offer spreads |
Product Fees |
As disclosed in the relevant X-Links™ ETN prospectus. Generally, product fees equal a fixed percentage of the X-Links™ ETN’s indicative value and reduce an investor’s return
by an amount that depends upon the performance of the reference index. Product fees may also include a redemption fee or charge |
As disclosed in the relevant ETF prospectus. Generally, product fees equal a fixed percentage of the ETF’s NAV and reduce an investor’s return by an amount that depends upon the performance
of the ETF’s portfolio of assets |
Expenses and Other Costs |
No additional expenses beyond product fees disclosed in the relevant X-Links™ ETN prospectus |
In addition to product fees, which equal a fixed percentage of the ETF’s NAV as stated in the ETF prospectus, there may be variable expenses such as taxes and other operating expenses,
which are paid indirectly by the investor as a percentage of the value of their investment |