The investor lends money to the issuer of the ETN, and then receives a return based on the movements in a specific benchmark, such as interest rates, commodity prices, a basket of shares, or bonds or a currency. The issuer promises to pay the amount reflected in the index, minus fees, upon maturity. ETNs also pay regular, stable interest.
They don’t need to be held to maturity. Investors can buy and sell them at any time. ETNs are highly liquid.