Exchange traded fund providers want to make sure their products are differentiated from exchange traded notes, or ETNs.

“We are concerned that end-investors may not be clear about the types of products that they are investing in,” Jennifer Grancio, managing director of iShares, the ETF franchise of BlackRock, told the Financial Times. “We’re working with some of the other established issuers to encourage self-regulation . . . We’re also discussing with regulators how best to take this forward.” [TVIX Washout Raises Questions Over ETNs]

Last month, odd price movements in a Credit Suisse security, VelocityShares Daily 2x VIX Short-Term ETN (NYSEArca: TVIX), raised eyebrows, and providers are worried that such instances could deter investors away from their products. A clear definition of each providers product along with cause and effect of a particular fund, security or note has been called for, reports Ajay Makan for Financial Times. [SEC Reviewing TVIX Flop: Reports]

Investment banks are at the focus of this request and most of the inquiry has to do with exchange traded notes and a call for more product segmentation.

Exchange traded notes differ from ETFs in that the notes are not backed by underlying shares, and are a promise from the issuing bank. Bank notes are riskier than ETFs because if a bank were to go bankrupt, investors would be in the same position as other unsecured creditors. [TVIX Fallout Lingers for Volatility Products, ETNs]

The two largest fund providers are crusading to gather more clarification on notes versus funds because the two are sometimes merged together by investors and the public.

Meanwhile, the Securities and Exchange Commission is looking into price movements in the Credit Suisse note, known as TVIX, which has since been reopened to new investors. FINRA, the self-regulatory organization for brokers, is also researching associated data. An investor warning may soon be issued with ETNs since the TVIX meltdown.

Tisha Guerrero contributed to this article.

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