XETs
XETs, or Exchange-Traded Notes, are financial instruments that track the performance of an underlying asset, index, or strategy but are issued by banks or other financial institutions rather than being directly tied to a security like an exchange-traded fund (ETF). Unlike ETFs, which hold the assets they represent, XETs are essentially debt obligations of the issuing institution, meaning they carry credit risk in addition to market risk.
XETs are traded on stock exchanges, similar to ETFs, providing liquidity and intraday pricing. They are often
One key distinction is that XETs do not pay dividends; instead, their value is derived from the
XETs are regulated under securities laws but may have different tax treatments depending on jurisdiction. They