Index-Linked GICs

What are Index-Linked GICs?

Index-Linked GICs provide the guaranteed principal benefits of a GIC with the potential for upside returns of investing in the markets. They are a savings certificate with a rate of return based solely on the performance of the S&P/TSX* 60 Index, with a three- or five-year term and no withdrawal privileges prior to maturity.

The S&P/TSX 60 Index tracks 60 foremost companies in leading industries in Canada, providing investors with a broad, but manageable index. Candidates for the S&P/TSX 60 Index are evaluated for ample liquidity and efficient share pricing, as well as representation of important industry segments within Canada.

  • Three- or five-year terms available
  • No fees or commissions
  • Eligible for RRSP/TFSA/Non-registered plans
  • Principal guaranteed at maturity
  • Receive gains made on the index
  • DICO insured (Up to $250,000)

S&P/TSX 60 Sector Breakdown

Pie chart showing the following sector breakdowns: 31% Financials, 25% Energy, 22% Materials, 6% Industrials, 6% Telecom Services, 4% Consumer Discretionary, 3% Consumer Staples, 1% Health Care, 1% Information Technology, 1% Utilities

Who should use Index-Linked GICs?

Investing in Index-Linked GIC is a great solution if you are looking for an option with the principal guaranteed and the potential for a higher return than that of a fixed rate investment. The rate of return is tied to the growth in the stock market. You can take advantage of gains in the market and your principal will be fully protected if market values drop.

What are the next steps?

Set up an appointment with your Libro Coach to assess your needs to see if an Index-Linked GIC is right for you.

Contact a Coach

*Standard & Poor's®" and "S&P®" are trademarks of The Standard & Poor's Financial Services LLC and have been licensed for use by Libro Credit Union. "TSX" is a trademark of the TMX Group Limited and has been licensed for use by Libro Credit Union. The Index-Linked GICs are not sponsored, endorsed, sold or promoted by Standard & Poor's or the Toronto Stock Exchange and neither party makes any representation regarding the advisability of investing in these deposits. 01/2014.


*Credential disclosure and mutual funds disclaimer