CompareStructuredProducts.com - 12/02/2020
In late 2018, global markets experienced what some may describe as a market correction, and others may describe as a short blip. Regardless of your opinion, a continuous swing in the market which sustains itself for more than a few days can have an impact upon market volatility. Given that the majority of structured products utilise major equity market indices as the underlying to their performance; when volatility increases in these markets, this thereby affects the potential return of the products for the better. The opposite can be said when volatility in the underlying is low.
For example, see the difference in the returns offered by the following plans which use the FTSE 100 Index as the underlying, and launched a year apart, in January 2019 and January 2020:
|Volatility conditions||Plan name|