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Les réponses aux questions les plus fréquemment

ACADEMY F.A.Q

Please find below the most frequently asked questions

Market risks: Each ETF reflects upward and downward movements in the price of its benchmark index. Investments in an ETF are therefore above all sensitive to the market risk associated with an adverse movement in the price of the components (shares, interest rates, credit, commodities, private equity, volatility, etc.) of the benchmark index, and therefore a drop in the said index. • Capital at Risk. ETFs are tracking instruments: Their risk profile is similar to a direct investment in the Benchmark Index. Investors’ capital is fully at risk and investors may not get back the amount originally invested. Investments are not covered by the provisions of the Financial Services Compensation Scheme (“FSCS”), or any similar scheme. • Counterparty Risk. Investors may be exposed to risks resulting from the use of an OTC Swap with Societe Generale. Physical ETFs may have Counterparty Risk resulting from the use of a Securities Lending Programme. • Currency Risk. ETFs may be exposed to currency risk if the ETF or Benchmark Index holdings are denominated in a currency different to that of the Benchmark Index they are tracking. This means that exchange rate fluctuations could have a negative or positive effect on returns. • Replication Risk. ETFs are designed to replicate the performance of the Benchmark Index. Unexpected events relating to the constituents of the Benchmark Index may impact the Index provider’s ability to calculate the Benchmark Index, which may affect the ETF’s ability to replicate the Benchmark Index efficiently. This may create Tracking Error in the ETF. • Underlying Risk. The Benchmark Index of a Lyxor ETF may be complex and volatile. When investing in commodities, the Benchmark Index is calculated with reference to commodity futures contracts which can expose investors to risks related to the cost of carry and transportation. ETFs exposed to Emerging Markets carry a greater risk of potential loss than investment in Developed Markets as they are exposed to a wide range of unpredictable Emerging Market risks. • Liquidity Risk. On-exchange liquidity may be limited as a result of a suspension in the underlying market represented by the Benchmark Index tracked by the ETF; a failure in the systems of one of the relevant stock exchanges, Societe Generale or other Market Maker systems; or an abnormal trading situation or event. All these risk factors, where applicable, are explained in greater detail in the “Risk Factors” section of the prospectus available on this website. It is important to study these before investing. Potential investors should also familiarise themselves with the main characteristics of the underlying index (number and main securities, sector and/or geographical allocation, past trends, etc.) in order to have an overview of the opportunities and risks associated with an exposure to the index in question. A wide range of information is available, in particular in the technical information sheets (available on this website).