When is the best time to buy an ETN?

I was tempted to enter the popular high yield ETNs (not ETF) CEFL and MORL a couple years ago, but now they're inactive and investors lost all their money. I learned that this happens a lot during stock market crashes. However, I'm attracted by the high dividends in addition to increases in share price. My thought is that the best time to buy into an ETN is after a a big crash when a recovery is likely. Am I right about this?

1 Answer

  • 1 month ago

    Quality is going to be an issue for any debt instruments when yields are high. The extra yield is often no substitute for a poor credit rating.

Still have questions? Get your answers by asking now.