ETNs and Trackers aim to replicate the performance of a single asset such as an equity or commodity index, a basket of shares, or a currency pair on a one-for-one basis (i.e. with no leverage). Both products are listed on the London Stock Exchange and can be traded through a stockbroker account. The key difference is that Trackers are a Securitised Derivative whereas ETNs are Notes.

Quanto ETNs hedge currency risk
SG ETNs are quoted in GBP, EUR and USD. Traditionally, where an underlying asset is quoted in a currency different to the investment, the investor is exposed to ‘Currency Risk’, whereby a change in exchange rate between the two currencies may erode the performance of the product. To eliminate this ‘Currency Risk’, Quanto ETNs replicate the performance of the underlying in percentage terms, ignoring changes in the exchange rate. So a 1% change in the price of an underlying such as gold would correspond to a similar change in the price of a Gold Quanto ETN. Quanto ETNs are subject to Quanto and management fees, details of which can be found on the product pages.  Please refer to the product Term Sheet by clicking on the relevant product below.

 The risk profile of ETNs & Trackers
As a one-for-one trading product, ETNS & Trackers have the same risk / reward profile as a direct investment in the underlying asset. However capital is at risk and the investor does not acquire an interest in the underlying asset. Any failure of Société Générale Acceptance in the case of Trackers, or  Société Générale  Effekten for ETNs to perform obligations when due may result in the loss of all or part of an investment. For full disclosure of all risks relating to ETNs & Trackers, click the risk warning icon at the top of the page.