Exchange-traded notes lose their appeal for investors

Investors have been withdrawing assets from exchange-traded notes as the credit crisis and falling commodity prices take their toll. In September, investors pulled roughly $460 million from 90 ETNs that are tracked by Morningstar. October figures are expected to be worse, although bankers are still optimistic about the sector. "We believe the outflows across commodity investment products, such as ETNs or ETFs, are only temporary," Barclays said. "The exchange-traded product market will continue to grow and there will continue to be new products offered to investors."