Tracking Products

Tracking Products aim to replicate the performance of an Underlying Asset such as an equity index, selection of stocks, physical commodity or a commodity index on a one-for-one basis (i.e. no leverage). As such, they are typically used as a cost-efficient tool for investors to diversify a portfolio into new markets or strategies.

As a tracking product, replication strategies have the same risk / reward profile as a direct investment in the underlying assets. However, capital is at risk and the investor does not acquire an interest in the underlying asset.

ETNS/ TRACKERS - Access the range

KEY BENEFITS	KEY RISKS
Liquidity: Exchange traded, live intraday bid/offer spread	Capital at Risk: When the value of the underlying falls and/or in case of default of the issuer
Transparency: Live pricing on the LSE	Counterparty Risk: The investor bears a full SG credit risk
Cost Efficiency: Low management fees and daily Quanto fees	Underlying Risk: The underlying may be volatile
Currency Hedge: Currency protection available where the underlying and product quote in different currencies
Eligibility: SIPP, ISA, SSAS, CGT