Final answer:
ETNs carry both credit risk, relating to the issuer's ability to meet its obligations, and market risk, which pertains to changes in the investment's value due to market fluctuations.
Step-by-step explanation:
Exchange-traded notes (ETNs) have both credit risk and market risk. Credit risk is associated with the possibility that the issuer of the ETN may default on their obligations. Since ETNs are unsecured debt obligations, the creditworthiness of the issuer is crucial to the value and safety of the investment. Market risk, on the other hand, involves the risk that the value of the ETN will fluctuate due to changes in the market. This could result from shifts in interest rates, foreign exchange rates, or changes in the index or benchmark that the ETN is designed to track.