For instance, USOI’s underlying index shows a yield of 16.25%. The ETN may provide a variable monthly coupon based on the option premiums generated.

Credit Suisse also offers two other ETNs with similar strategies based on gold and silver. The Credit Suisse X-Links Silver Shares Covered Call ETN (NasdaqGM: SLVO) targets the iShares Silver Trust (NYSEArca: SLV), and the Credit Suisse X-Links Gold Shares Covered Call ETN (NasdaqGM: GLDI) targets the SPDR Gold Shares (NYSEArca: GLD). SLVO shows a 15.52% 12-month yield and GLDI has a 13.39% 12-month yield.

Potential investors should keep in mind that ETNs are not exchange traded funds. Unlike ETFs, ETNs are debt securities issued by financial institutions that promise to pay the return of an index, minus fees and taxes. Therefore, investors are exposed to the credit risk or the possibility the underwriting bank goes bankrupt. The note can be vulnerable if the issuer gets into financial trouble, otherwise known as a default. With an ETN, an investor can lose some or all of their investment if the ETN issuer goes under.

For more information on new fund products, visit our new ETFs category.