What is usually included in structured products?

Structured products typically consist of derivatives combined with a pre-packaged investment strategy. These financial instruments are designed to meet specific investment objectives by utilizing derivatives to alter the risk-return profile and correlation with underlying assets. The inclusion of derivatives allows structured products to be customized to provide tailored exposure to various asset classes while potentially offering capital protection or enhanced returns based on market conditions.

The nature of structured products enables investors to access particular market opportunities and strategies, such as leveraging exposure to equities, fixed income, or other asset classes, while managing risks according to their preferences. This combination of derivatives and investment strategies makes structured products versatile tools for investors looking to achieve specific financial goals.

Other options such as commodities, real estate options, government-backed securities, or securities traded solely on stock exchanges do not capture the essence of what structured products are. While they might pertain to investment vehicles, they do not encompass the derivative-driven, strategic nature that defines structured products effectively.