The use of indices as underlyings in structured products forms the most popular group of assets because of the wide choice that exists among different index types.

Indices also make ideal choices in terms of hedging, risk management and transaction costs. This article will consider three groups of next-generation indices, classified as thematic, ESG or strategy-based. Part one of this survey considered the so-called traditional index categories of market capitalisation, sectors and factors. Thematic indices are based on a broad group of strategies which seek to harness social, economic or investment trends. This includes emerging industries such as AI an

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