Capital Guaranteed Structured Product in 2023 - MSCI World exposure

In simple terms, you may be a low risk investor, retired and have money on deposit. You want to access the the Global markets. Don't understand how ETFs work and believe individual stocks are too risky as you lost too much in 08.

This is a solution (Albeit not perfect), you get access to the markets, have protection of the underlying bank and you rest easy at night. Yes the broker got his/her 2% and the provider got their 2%, but in 5 years if its up 10 -15% the client is happy. Yes there are 100 different/better options but this suits and is suitable to a certain cohort. Even better if broker fees are reimbursed to the client and allocation is 102 and they just charge their normal annual fee.
 
These kind of products ensure that the producer and distributor get all their money and the purchaser takes all the risk and whatever profit, if any, at the end of the term.

Yes, they give an impression of being low, or even, no risk - this is exactly what they are and as we all know, low risk = low return
 
Got an email about one of these too, shows risk score 2 so it does imply low return for the low risk;

etoro.turtl.co

eToro Global-Edge

Market Volatility: Current financial markets are highly volatile, influenced by anticipated interest rate cuts, high US treasury yields, and geopolitical tensions across Ukraine, Taiwan, and the Middle East.
etoro.turtl.co etoro.turtl.co

Anyone have a view on this?
 
presidenttttt said:
Anyone have a view on this?
Click to expand...
Don't make investment decisions on the basis of (unsolicited?) random emails?

Apart from that, this certainly doesn't look like a low risk option...

Screenshot_20241118-072832.png


Finally, at a glance it looks effectively like a tracker bond and you can find lots of old threads discussing these and why they're generally not a good option.

 
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