ETN Assets Surge on Dividends, Higher Liquidity

Holdings of U.S. exchange-traded notes have climbed by about a third this year while sales of unlisted structured securities stagnate, as investors prefer their greater liquidity and access to dividends.

Issuance of structured notes fell to $28.5 billion this year through Sept. 20, down less than 1 percent from the same period of 2012, according to data compiled by Bloomberg. The market capitalization of ETNS rose by 34 percent since Dec. 31 to $21.5 billion.

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