Many retail structured products are linked to a single equity index for direct exposure to a country, region or sector.

Products linked to a single mainstream index such as the Eurostoxx 50, S&P 500, Nasdaq 100, Nikkei 225 and FTSE 100 are extremely common around the world and, in many cases, they are the natural choice for an investor’s first or core structured product. Other indices such as the MSCI Emerging Markets Index make a good choice for diversification. However sometimes a distributor might prefer to create and source a product linked to a custom created basket of stocks instead. Here we will