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In the exhibit, the risk related to ETN is actually incorrect. The definition of settlement risk arises in case of OTC contracts like Swaps, Synthetic ETFs, Geared Funds, etc. So, a fund that uses over-the-counter (OTC) derivatives to gain market exposure has settlement risk; that is, mark-to-market (unrealized) gains are subject to counterparty default.
ETNs are not OTC products. They are traded on the exchange and are mere promises to pay the index return less expenses. They are subject to Counterparty Risk because they are unsecured, unsubordinated debt notes and, therefore, are subject to default by the ETN issuer.