Product performance
Exchange-traded funds are used increasingly as underlyings for structured products, in this case the popular iShares MSCI Emerging Markets Index Fund, the SPDR S&P 500 ETF and iShares FTSE/Xinhua China 25 Index Fund
This month we examine three products linked to exchange-traded funds (ETFs). These products are very popular in the US as they are cheap to use as an underlying (often with others in a basket), while structured products linked to ETFs appeal to investors as they can change the risk-return profile of the fund. Most often, one finds growth products linked to ETFs, though there is no reason why they could not be used for income products (the majority of which are linked to stocks in the US).
The
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