Link to: London Stock Exchange Home Page
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Key features:

 

Trackers:

 

  • Tracks an underlying asset (commodity, Halifax house price index, equity indices etc)
  • Cost efficient means to trade an asset
  • Diversify exposure across an index
  • Stamp duty free
  • Typically long-dated or indeed undated with an indefinite lifespan

 

 

Reverse Trackers:

 

  • An inverse relationship with the underlying asset
  • Profit from downwards price movements in the underlying
  • Stamp duty free

 

 

Capital Protected:

 

  • Exposure to underlying asset at fixed percentage
  • Capital invested is protected at specified level
  • Stamp duty free

 

 

Yield Enhancement:

 

  • Track underlying instrument without leveraged downside
  • Can incorporate many different features which affect payout (e.g. bonus if underlying remains with a specific range).


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