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Cushion Downside: Full upside, limited downside

Tuesday, 22 November 2022 Reading time : 1 minute

The Swiss Market Index is still trading at almost -14% YTD. However, the last few weeks have been characterized by an upward trend - market participants seem to be cautious, but nevertheless optimistic about future developments. Volatility is dropping back towards the long-term average after some highs. 

In such scenarios, it is important to many investors not only to be able to profit from the upward movement, but also to limit the risk of loss in the event of price declines. Here, participation products that provide a certain "cushioning" for downside scenarios can be suitable.

The ZKB Cushion Downside Certificate on the SMI® meets this requirement. If the index develops positively after the start date of the product, investors participate fully in its performance. However, if the index falls below the intial value during the term, the downside participation is limited to 60% - thus reducing the potential loss compared to direct investment.


Cushion Downside Participation Certificate on the SMI® (CHF)

  • 100% upside participation
  • 60% downside participation
  • 18 months term
  • Subscription deadline November 30, 2022, 4:00 p.m.
  • Termsheet

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