Glossary
Tracker Certificate
A Tracker Certificate is a structured product that replicates the performance of an underlying asset on a near one-to-one basis, without leverage and generally without capital protection. It provides cost-efficient access to markets, indices, or strategies. Losses arise in proportion to a negative underlying asset performance.
At a glance
- Tracker Certificates offer direct participation in the underlying asset without leverage.
- There is no capital protection; a decline in the underlying asset produces a corresponding loss.
- Issuer Risk remains with the holder.
Frequently asked questions
A Tracker Certificate is a debt obligation of the issuer and is subject to its default risk. An ETF is a regulated fund with segregated assets that are protected in the event of the fund company's insolvency. However, Tracker Certificates can provide access to markets or strategies that are not available as an ETF.
Part of the topic
AMC & Structuring
