Which type of GIC is insured by CDIC and has some exposure to equity markets?

Index-Linked GICs are designed to provide investors with a return that is tied to the performance of a specific equity market index. This type of Guaranteed Investment Certificate (GIC) offers both principal protection and the potential for higher returns based on market performance, distinguishing it from traditional GICs that typically provide fixed interest rates.

The Canadian Deposit Insurance Corporation (CDIC) ensures that deposits held in eligible GICs, including Index-Linked GICs, are protected up to a certain limit, making them a secure investment option. This layer of security coupled with their exposure to equity markets allows investors to benefit from market potential while safeguarding their initial investment.

Other types of GICs, such as Installment GICs and Interest-rate linked GICs, provide different mechanisms for returns and may not involve equity market exposure in the same way. Additionally, bonds are a separate asset class and do not fall under the GIC category, thereby lacking the specific features associated with GICs.