The Globe and Mail reports in its Friday edition that autocallable exchange-traded funds are one of the hottest product innovations in the United States. In a Globe special, Terry Cain writes quotes Casey Yang at TD Securities saying that autocallable ETFs meet a specific investor need: high income with some downside protection. A TD report published in September describes the autocallable ETF as a "market-linked investment that provides regular coupon payments and aims to return principal at maturity, or earlier if the note is called, provided the underlying reference index remains above predetermined downside thresholds." The report adds they are a bond-like investment in which both the income stream and principal protection are linked to equity market performance rather than traditional interest rates. These ETFs offer the potential for higher monthly income than traditional fixed-income securities, but that potential comes with some equity market risk. Coupon payments typically continue as long as the reference index remains above a preset downside barrier. Principal is generally returned in full at maturity, unless the index finishes below that barrier, at which point investors may experience a loss of capital.